AMEC hopes tool can ease funding tightness
The Association of Mining and Exploration Companies (AMEC) says a new capital raising tool could help to ease funding tightness in the resources sector.
ASX BookBuild, developed by On-Market Bookbuilds in partnership with the Australian Securities Exchange, aims to improve the transparency of most kinds of capital raisings.
AMEC chief executive Simon Bennison said equity finance for the mineral exploration sector was extraordinarily tight.
"Hopefully this will encourage investors to become more engaged in capital raising activities, as they will now be able to participate in all capital raisings that use the ASX BookBuild Facility," he said.
"The ASX Bookbuild Facility provides mineral exploration and mining companies more control over the pricing and allocation of their capital raising.
"Importantly it will allow companies access to all of market demand when conducting a capital raising.
"Given the decreasing number of IPOs and average amount raised for metals and mining companies, this is a timely and useful facility for the industry."
Mr Bennison said AMEC looked forward to the tool being road-tested in the coming months to assess its benefits to the industry.
