Om Holdings (ASX: OMH) has received a major vote of confidence in the company's operations from institutional investors to develop the 80% owned Sarawak ferroalloy project in Malaysia, with a A$26.25 million capital raising.
The funding injection is from a placement of 75 million shares at $0.35, with strategic investor Boustead Singapore accounting for two thirds (50 million shares) of the placement.
Proceeds will finance development activities at Sarawak as well as assisting in the timely financial close of the project, expected to occur in the June quarter of 2012.
Om Holdings added that in addition to facilitating the development of Sarawak, the placement to Boustead represents the formalisation of a strong strategic relationship with one of South-East Asia’s most successful, progressive and experienced engineering services businesses.
For Sarawak, a Binding term sheet is in place with JFE Shoji Trade Corporation of Japan signed for an off-take of up to 100,000 tonnes per annum of Ferro Silicon product from the project.