4th Jun 2014 11:17
LONDON (Alliance News) - Bellzone Mining PLC Tuesday said it raise roughly GBP1.1 million net of expenses through the placing of 51.3 million new shares at a price of 2.5 pence per share with one of its largest shareholders, China Sonangol International Pte Ltd.
The iron ore, nickel and copper mining exploration and development company, with operations in the Republic of Guinea, said China Sonangol will either find other investors for the placing shares or keep the shares itself.
The company said the proceeds of the placing are expected to provide Bellzone with sufficient funds to continue operations until early August 2014, whilst discussions over further short-term funding and project finance continues.
The placing price is at a discount of 22% of the closing mid-price of the company's shares of 3.2 pence on June 3. On Wednesday, Bellzone shares were up 1.6% to 3.25 pence.
The company announced discussions over further funding from China Sonangol, which has a 24.61% stake in Bellzone, during March and said at the time that the discussions could lead to a takeover offer being made for the company.
However, in April, China Sonangol said it does not intend to make an offer for the company but said the two parties remained in equity capital discussions.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Bellzone Mining