12th Jul 2016 07:29
LONDON (Alliance News) - Kolar Gold Ltd on Tuesday said it has raised GBP900,000 via a placing to back work on its assets in India and said it has appointed a new chief executive.
Kolar said it will issue 81.8 million shares at 1.1 pence per share to raise the funds. Shares in the company were down 17% to 1.31p early Tuesday.
Metal Tiger PLC, an AIM-listed natural resources investor, will be the cornerstone investor in the placing. It will spend GBP200,000 on 18.2 million of the placing shares, giving it a 9.4% stake in the enlarged share capital of Kolar. Metal Tiger shares were up 0.3% to 3.34p on Tuesday after the open.
As part of the placing, Cameron Parry, a non-executive director at Metal Tiger, will become Kolar's chief executive, while Luke Cairns will become an executive director. Parry was Metal Tiger's chief executive until a management shake-up initiated at the company in February.
Kolar said the funds will allow it to pursue work on its assets in India, in addition to developing activities in other areas and also considering potential investment opportunities in the financial technology sector.
By Sam Unsted; [email protected]; @SamUAtAlliance
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