Australia-based drilling and mineral analysis service contractor Swick Mining Services is planning to raise A$15 million ($10.2 million) to provide it with the flexibility to pursue future organic and inorganic growth opportunities for the business, Managing Director Kent Swick says.
The ASX-listed company plans to issue shares to new and existing shareholders to raise this cash and has also provided existing shareholders with an opportunity to raise an additional A$2 million as part of its share purchase plan.
Kent Swick said: “By delivering on our strategy Swick is well placed for growth in financial year 2020, underpinned by our strong order book. We are also seeing additional opportunities to increase our rig fleet utilisation both in Australia and abroad, with a target of 70 FTE (full-time equivalent) underground rigs in work by financial year end, up from an average of 53.6 in FY19.
“This additional funding ensures Swick has the financial flexibility to pursue future organic and inorganic growth opportunities for the business. We are grateful for the strong support received from our existing institutional shareholders and are pleased to welcome several new institutional holders on to our share register.”