23rd Feb 2015 08:16
LONDON (Alliance News) - Mariana Resources Ltd Monday said it raised net funds of GBP1.76 million through a share placing, money it will use to advance its assets in Peru, Argentina and Suriname, including drilling.
In a statement, the metals explorer said it will issue and allot 112.8 million new shares at a price of 1.6 pence.
It said Exploration Capital Partners 2014 Ltd Partnership, part of the Sprott Group of Companies, has become a significant shareholder with a 7.5% stake following the placing.
"The funds raised will advance a number of Mariana's assets including the upcoming deeper drilling at Soledad, scout drilling of high grade gold and silver targets in Argentina and the continuation of our drill targeting at the Nassau Gold project in Suriname. The Hot Maden project in Turkey will continue to be advanced by Lidya on a fully funded basis," Mariana Chief Executive Glen Parsons said in a statement.
Mariana said Brandon Hill Capital and Hybridan LLP assisted with the share placement in the
UK, and have been paid a cash commission of 5% on the monies raised by them as well as
warrants over 2.1 million shares at 1.6p exercisable for two years.
Separately, the company said it has now terminated its convertible finance facility with Bergen Global Opportunity Fund. It will issue the fund with 30 million shares under the deal.
"Given the improvement in Mariana's share price and the interest shown in Mariana by institutional investors since the facility agreement was entered into, Mariana and Bergen have agreed that the balance of the facility will no longer be required, and therefore the facility has been mutually terminated at no additional cost. The balance of the first convertible issued by Mariana under
the facility agreement in September 2014 will run its course to full conversion," it said.
"The funding secured was at more favourable terms than what was available in the market at that time. Bergen has understood our business and what growth we were trying to achieve and has been exemplary in complying with its obligations under the agreement but has also been very flexible and
accommodating beyond what was required under the agreement," Parsons added.
Mariana Resources shares were up 5.6% at 1.69 pence early Monday.
By Steve McGrath; [email protected]; @stevemcgrath1
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