27th Aug 2019 10:47
(Alliance News) - Kazera Global PLC said Tuesday it has raised GBP400,000 via a placing of 66.7 million new shares at a price of 0.60 pence per share.
The Africa focused energy and resources investment company's shares in London were down 23% in London to trade at the 0.60p placing price.
Kazera has hired a new joint broker, Peterhouse Capital Ltd, to carry out the placing. In lieu of fees, Peterhouse was issued 3.0 million shares, at the same price as the placing. Peterhouse also received 3.3 million broker warrants, exercisable at the placing price for the next 36 months.
Kazera said it is "acutely aware" the placing is dilutive for existing shareholders and considered whether a pre-emptive offering "might be possible".
"On this occasion the fundraise has been conducted with the intention of minimising the associated costs, both direct and in terms of limited management time, and therefore the board has reluctantly concluded that it was neither practicable nor cost effective to make an offer for subscription to the shareholders at this time," the company explained.
The placing price was below the stock's current nominal value of 1p, meaning it will need to carry out a subdivision. Each existing share will be subdivided into one new share of 0.1p and one deferred share of 0.9p.
The placing, and subdivision, is subject to shareholder approval, which will be sought at a general meeting on September 20. If approved, the shares will be admitted to AIM on September 23.
The placing shares will represent about 19% of the company's expanded issued share capital.
Kazera said the net proceeds will be used for further exploration drilling at the company's Namibia tantalite investment mine. Kazera owns an interest in the mine through its 75% investment in African Tantalum (Pty) Ltd.
Kazera said it has continued to focus on the phased exploration drilling programme to delineate further mineral resources across the Namibia property. Specifically, Kazera is hoping to complete further drilling over the Purple Haze, White City and Signaalberg acreage, with the aim of reporting a "more comprehensive" JORC compliant mineral resource.
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Kazera Global