10th Oct 2014 10:11
LONDON (Alliance News) - Bellzone Mining PLC Friday said it will raise enough funds through a placing with China Sonangol to last until the end of November, as long as its shareholders approve a conditional placing that would see the Chinese-Angolan joint venture become its majority shareholder.
Bellzone said will raise up to GBP1.2 million through a discounted placing of around 238.1 million shares at 0.5 pence each with China Sonangol, which will increase China Sonangol's stake in the company to 46.25%, from 29.9%.
It then wants to raise a further GBP490,000 by issuing about 98.9 million more shares to China Sonangol at the same price, but that is conditional on approval from Bellzone shareholders. If it proceeds, the conditional placing would take China Sonagol's stake to 51%, from 46.25%.
That would require China Sonangol to make a takeover offer for the remaining Bellzone shares, unless it secures a waiver of the UK takeover rules.
The placing price represents a discount of 3.8% to the closing of the company's shares of 0.52 pence per share on September 19, which was the last day of trading before the company's shares were suspended from trading on the AIM Market, it said in a statement.
The proceeds of the unconditional placing will fund its operations until the end of this month, Bellzone said, while the conditional placing funds would fund it until the end of November.
"Until the company has clarity regarding its financial position, including China Sonangol's views with respect to financing beyond the end of November, it believes it is appropriate that its ordinary shares remain suspended from trading on AIM," said Bellzone.
China Sonangol is a joint venture between Angola's state-owned oil company Sonangol E.P and Hong Kong-based company New Bright International Development.
Late last month, Bellzone said it had been unable to reach a loan agreement with China Sonangol. It is also talking with other potential long-term financing providers.
By Joshua Warner; [email protected]; @JoshAlliance
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