Mineral Resources Ltd (ASX: MIN) shares are 2.4% higher at $68.25 apiece after the ASX 200 mining giant announced US$1.1 billion (A$1.7 billion) in new funding via a notes offering.
The senior unsecured 9.25% notes due 2028 have been offered to institutional buyers.
The company originally intended to raise US$850 million but decided to increase the amount.
Mineral Resources expects settlement to occur in New York on 3 October, subject to closing conditions.
The miner says it will use the funds "for general corporate purposes, including for capital expenditures".
The notes will pay interest on 1 April and 1 October each year, commencing on 1 April 2024, at a rate of 9.25% per annum.
They will be guaranteed by wholly-owned subsidiaries of MinRes.
What else is happening?
The miner recently updated its mineral resource and ore reserve statement for its Mt Marion and Wodgina lithium mines and provided a maiden statement for its Ken's Bore iron ore mine.
Mt Marion's reserve is now 35.7Mt of lithium at 1.42% Li2O, up 107% year over year.
Wodgina's reserve is now 164.6Mt at 1.15% Li2O, up 12%.
Mineral Resources managing director Chris Ellison commented:
Across Mt Marion and Wodgina, our lithium reserves now total more than 200 million tonnes, while successful drilling at Mt Marion has confirmed it has a longer life and excellent potential for underground mining.
Ken Bore's reserve came in at 207Mt at 58.1% Fe.
Mineral Resources share price update
Mineral Resource shares have fallen 8.7% in the year to date and are up 4.4% over the past 12 months.
