15th Sep 2014 07:31
LONDON (Alliance News) - Beacon Hill Resources PLC saw its shares slide early Monday after it said had raised about GBP1.3 million by placing 1.3 billion shares, money it will add to its existing cash resources to see it through to the end of the year when it hopes it will have arranged a new project expansion financing facility.
In a statement, the company said it will place the shares with some institutional investors, including Darwin Strategic Ltd which arranged the placing. It is conditional on being approved by Beacon Hill's shareholders at its annual general meeting later Monday and a second general meeting on September 29.
Beacon Hill is granting the placing subscribers one warrant for every two placing shares it issues, exercisable at 0.35 pence a share for a period of up to three years. The warrant issue needs to be approved at the second meeting.
The company said the placing will be conducted in two tranches, with the first tranche of 373 million placing shares and 186.5 million warrants to be issued as soon as practicable following the first general meeting later Monday. The second tranche of 877 million placing shares and 438.5 million warrants are to be issued as soon as practicable following the second general meeting.
It added that the number of placing shares and warrants issued and granted under the second tranche will be capped so that the subscribers, or any parties acting in concert with any of them, would have an interest in no more than 29.9% of the company's issued share capital. The subscribers have agreed not to exercise any warrants or buy more shares if, as a result, they would be obliged to make a mandatory offer for the whole share capital of the company.
Henderson Global Investors and Darwin Strategic are both subscribers in the placing. Henderson has subscribed for 500 million placing shares and 250 million warrants, while Darwin has subscribed for 350 million placing shares and 175 million warrants.
In August, Beacon Hill reported a delay in the approval of a proposed USD20.0 million senior debt facility. It still expects final credit approval during the third quarter, subject to implementation of a rolling stock sub-lease and any other final conditions imposed by the new senior lender, and is hoping to drawdown the facility in the fourth quarter. It needs the money to expand the Minas Moatize wash plant to 3.2 million tons a year, from 1.8 million tonnes a year currently.
Beacon Hill shares were down 35.2% at 0.172 pence early Monday.
By Steve McGrath; [email protected]; @stevemcgrath1
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