Namibia-focused base metals group Weatherly International plans a £10.08 million placing at 21p.

Broker Panmure Gordon is to handle the proposed placing for AIM-listed Weatherly, which wants to use the money to develop its key projects. These include: the Berg Aukas zinc mine with 1.78 million tonnes at 17 per cent zinc, five per cent lead and 0.6 per cent vanadium; the Tschudi open pit, with an estimated 3.2 million tonnes at 1.2 per cent copper and 19 grammes of silver per tonne of ore; and the Kombat open pit, now being drilled to define its mineralisation.

The proposed placing price represents a 16.5 per cent premium on Weatherly’s present share price of 18p, although the shares did hit 28.25p in May, having risen in two years from a 3p low. Despite that setback, they have still more than doubled since Growth Company Investor highlighted them as a ‘gamble’ at 8.25p in late 2005.

Partial profit-taking might be prudent, if possible in today’s market. But there could be gains longer term if the market recovers.

Weatherly International	AIM	£9.12m	2.25p	0.00p
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Metals group seeks £10m			17/08/2007
Robert Tyerman’s Exploration Insights			11/07/2006
Weatherly copper deal pleases			28/06/2006
Copper deal for Weatherly			21/11/2005