Maptek is taking a 13.2% stake in K2Fly in return or around $4 million.

 

The four-decade-old company, which provides software, hardware, and services, is a dominant player in the supply of planning and geological modelling software and wants in on K2Fly's cloud-based ESG compliance, disclosure, and technical assurance offering.

 

K2Fly says it has the only off-the-shelf offering in an increasingly ESG-focused world and sees potential synergies with Maptek's own software.

 

Maptek chairman Peter Johnson will join the K2fly board as a non-executive director as part of the deal. 

 

The placement was priced at 18c, a 4% premium to recent trading levels, and was also backed by existing institutional and sophisticated investors.

 

Argonaut Securities was lead manager to the raising.

 

The cash injection, its first since a $7.25 million placement at 29c completed a year ago, is needed for product development and working capital requirements.

 

K2Fly chair Jenny Cutri said the backing of the world's largest privately held mining software business was a validation of the K2fly business and growth outlook.

 

Its blue-chip client base includes Rio Tinto, Vale, Fortescue Metals Group, Newmont Corporation, Glencore, Newcrest Mining, Roy Hill, AngloGold Ashanti and Gold Fields.

 

The company expects to have almost $8 million in cash at the end of the placement.

 

K2Fly shares, which have traded at 14-35c over the past year, jumped 20% on the news to 21c, valuing it at $25 million.