Australia's CopperCo eyes cathode output rise

SYDNEY, March 11 (Reuters) - Australia's CopperCo Ltd (CUO.AX: Quote, Profile, Research, Stock Buzz) said on Tuesday it will fund an expansion in copper cathode making capacity by up to 58 percent to 30,000 tonnes a year via a A$30.4 million ($27.9 million) placement to institutions.

The rise in output at its Lady Annie mine in Queensland state to between 25,000 and 30,000 tonnes annually from 19,000 tonnes will start in the fourth quarter of calendar 2008, the company said.

CopperCo, said it would immediately issue 33.7 million shares at A$0.54 each, raising A$18.2 million, to institutional investors in Europe.

A further 22.6 million shares at A$0.54, raising A$12.2 million, will be issued to institutions in Europe and Asia Pacific, subject to shareholder approval in April, it said.

CopperCo in late January agreed to buy mining investment group Mineral Securities Ltd (MinSec) MXX.AX to assemble a diversified base and precious metals miner with a market value of around A$500 million.

CopperCo's main asset is the Lady Annie mine, while MinSec holds 16.4 percent of African platinum explorer Platmin Ltd (PPN.TO: Quote, Profile, Research, Stock Buzz).

CopperCo stock was down 7.1 percent to A$0.52, while MinSec was 1.7 percent down to A$1.13 against a 0.9 percent decline in the S&P/ASX200 index. ($1=A$1.09) (Reporting by James Regan, editing by Richard Pullin)