US producer Century Aluminum announced that it plans to offer 7,250,000 newly-issued shares as a first step to financing a greenfield aluminium smelter in Iceland.
A portion of the shares will be offered to institutional investors in Iceland in the form of global depository receipts. The company said it has applied to the First North Iceland market of the Iceland Stock Exchange for a listing of such shares.
Century expects to use the net proceeds of the offering as part of the financing for its proposed new aluminium smelter near Helguvik. Pending the commencement of major construction activities for this project in early 2008, the company intends to apply the net proceeds from the offering to debt reduction, investment in highly rated short-term securities and other corporate purposes.
"Given the solid progress we have made on the Helguvik project, we believe it is now prudent to secure this important part of the financing package," said Logan W. Kruger, President and Chief Executive Officer.
Century already operates one smelter in Iceland. The Grundartangi plant had its capacity raised from 90,000tpy to 220,000tpy last year and that figure will rise to 260,000tpy by the end of 2007. The Helguvik project envisages a 250,000tpy smelter.
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