6th Oct 2015 11:17
LONDON (Alliance News) - North River Resources PLC on Tuesday said it has raised a total of USD4.0 million from the first phase of fundraising for the Namib lead-zinc project in Namibia.
North River said it raised GBP377,135 from its open offer and shortfall placing, having already raised GBP243,500 from the placing portion last week. The additional funding came from the shortfall placing. A total of 189.6 million shares were issued under the two tranches at 0.2 pence per share.
North River shares were down 4.0% to 0.1825 pence on Tuesday.
As the open offer and shortfall placing fell short of the total USD4.0 million the company needed to raise, it has issued another 94.6 million shares to Greenstone Resources, its major shareholder with a stake of around 30%. To make up the rest of the funds needed, the company will draw down another USD2.2 million under its underwriting facility with Greenstone in order to raise the total USD4.0 million.
The funding will be used to progress the Namib project to a construction decision, North River said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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