Prosperity Minerals today announces a proposed share offer by way of a placing of ordinary shares with institutional investors and its intention to seek admission to trading on AIM, a market operated by the London Stock Exchange plc, of its issued and soon to be issued ordinary shares. Evolution Securities Limited is acting as nominated adviser and broker to Prosperity Minerals.
The Prosperity Group owns Yingde Dragon Mountain, which owns a large modern suspension preheater dry process cement manufacturing plant and has a 25 per cent interest in Prosperity Conch Cement, a joint venture with Anhui Conch which is currently constructing another large cement plant. The cement plants are located on adjacent sites in Guangdong Province, the PRC
Yingde Dragon Mountain has been profitable to date and made net profits of approximately £14.25 million in 2005. Yingde Dragon Mountain will have, when all production lines and grinding mills are fully operational, an estimated production capacity of saleable output of approximately 5.9Mt of clinker and cement. Prosperity Conch Cement will have, when fully operational, an estimated production capacity of approximately of 7.8Mt of clinker and cement.
The Offer will comprise a placing of ordinary shares to institutional investors – the Company is currently conducting an institutional investor roadshow. It is expected that Prosperity Minerals shares will be admitted to trading towards the end of May 2006. The Group will use the placing proceeds to finance its capital expenditure and business expansion, strengthen its capital base and improve its financial position.
Mr David Wong, Chairman and Chief Executive of Prosperity Minerals, said: “China continues to enjoy good economic growth and with that growth comes a necessity for key materials such as cement and iron ore. Our successful iron ore trading business has grown out of the Chinese steel industry’s need for substantial iron ore imports. Increased infrastructure construction is creating demand for high-quality cement. We are establishing ourselves with significant cement production capacity to help meet this need.”
“We are delighted with the progress towards our proposed AIM admission and look forward to meeting investors who have an interest in becoming shareholders in Prosperity Minerals and who see an exciting opportunity to invest in a growth company and the PRC’s economic prosperity.”