26th Apr 2016 08:45
LONDON (Alliance News) - Mariana Resources Ltd on Tuesday said it raised funds through a private placement and issued warrants as part of the transaction.
Mariana said it will issue up to 330.0 million shares under the private placement and has already received commitments in excess of GBP4.0 million, with the ability to increase the total fundraising to GBP6.0 million.
It said the money will be used to advance the preliminary economic assessment and, later, feasibility study of Hot Maden, its gold and copper project in Turkey.
The terms of the placing have been based on Mariana's closing price of 1.82 pence on Friday, it said. it anticipates completion of the deal will occur at close of business on May 4. Mariana shares were down 4.1% to 1.99 pence on Tuesday.
It added an unnamed North American royalty company and its consortium has agreed to invest USD5.0 million in the placing to become a new cornerstone investor.
Mariana also will issue one warrant for every two shares subscribed to in the private placement. The warrants are exercisable for a period of two years at 2.50p per share.
"Mariana is continuing to attract a broader and diverse investor base with its attractive portfolio of assets. This fundraising has been subscribed for by a number of supportive influential investors and institutions globally, including a significant investment from a strategic North American royalty company," said Chief Executive Glen Parsons.
By Sam Unsted; [email protected]; @SamUAtAlliance
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