The AIC Mines Ltd (ASX: A1M) share price has returned from its lengthy suspension on Friday and is rocketing higher.
At the time of writing, the copper miner's shares are up 60% to 36 cents.
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Why is the AIC Mines share price rocketing higher?
This morning the AIC Mines share price returned to trade for the first time since August after completing a $40 million capital raising.
AIC Mines' shares were suspended in August whilst it sought approval for mining investment company FMR to acquire a 28% to 30% interest in the company as part of a related deal.
Under section 606 of the Corporations Act, unless an exception applies, an entity is prohibited from acquiring a greater than 20% interest in the voting shares of a listed company without making a takeover offer.
However, one of the exceptions is for the transaction to be approved by shareholders. That approval was duly granted at a shareholder meeting late last month after 99.91% of votes were cast in favour of the resolution.
Why did AIC Mines raise $40 million?
AIC Mines raised $40 million at 25 cents per new share in order to fund the acquisition of the Eloise Copper Mine from FMR.
Management believes the deal heralds a new and exciting stage for the company. It notes that it creates a new growth-oriented ASX-listed copper mining company with strong free cashflow and the ability to add value through exploration success, resource growth, operational reliability, and regional consolidation.
AIC's Managing Director, Aaron Colleran, commented: "Considerable effort has gone into completing the Eloise transaction and I am very thankful for the herculean efforts of both the AIC and FMR employees who have assisted with the completion process and ownership transition. The opportunity ahead of us is very exciting."
"We can now turn our attention to capturing the potential which we believe exists at Eloise. AIC's exploration strategy for Eloise will focus on both extensions to the known resource areas and the discovery of new satellite lodes within the Eloise tenements. There is clear potential to extend the mine life well beyond five years," he added.
