New Century Resources completes $116.7m equity raise

New Century Resources ASX NCZ Sibanye-Stillwater equity raising strategic investment
Global mining group Sibayne-Stillwater now owns one-fifth of New Century Resources.

Zinc producer New Century Resources (ASX: NCZ) has announced the completion of a $116.7 million equity raising which effectively welcomes global precious metals mining company Sibayne-Stillwater as a major shareholder.

The placement forms part of New Century’s transformational strategy to grow into a world-leading environmental, social and governance (ESG) focused tailings management and economic rehabilitation company.

A 19.99% stake acquired by Sibayne-Stillwater represents about $61 million of the total $116.7 million raised.

The pair’s strategic partnership was first announced in October, when Sibayne-Stillwater subscribed for an initial investment worth about $21.6 million.

It has now been confirmed that the second tranche of the placement shares was approved by 99.6% of New Century shareholders at the company’s annual general meeting on 30 November.

All Sibayne-Stillwater shares in New Century are escrowed for 12 months from 27 October 2021.

A platform for growth

New Century Resources managing director Patrick Walta said the equity raising gives the company a platform for growth in 2022 and beyond.

“We’re now completely debt-free and we have a suite of organic and inorganic options in front of us.”

“Our Century asset is humming nicely with the tailings operation, we can develop Silver King in 2022 and we also have Mt Lyell, our newly acquired copper option in Tasmania,” he said.

“This funding and investment coupled with the strong earnings we have from the existing operations at Century are really giving us a great platform for growth going forward.”

Sibayne-Stillwater’s plan to build a global tailings retreatment business

In a separate announcement, Sibayne-Stillwater chief executive officer Neal Froneman said his company was impressed with what the New Century management team has achieved at developing a globally significant zinc producing business through the reprocessing of tailings, while facilitating the rehabilitation of an old mine site.

“We are pleased to partner with New Century Resources in this exciting next phase of their growth at Mt Lyell and support their vision of growing their tailings management advisory service business model globally, to produce green metals and address environmental legacy issues,” he said.

“This investment in New Century represents a significant next step in our strategy of building a leading global tailings retreatment business, diversified by commodity and geography and is aligned with our sustainability strategy of building a climate change resilient business,” Mr Froneman added.

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