29th Jan 2014 10:18
LONDON (Alliance News) - North River Resources PLC Wednesday said it has raised cash through a share placing and has made a drill-for-equity deal in Namibia.
The mineral exploration and development company said it has raised roughly GBP1.0 million through a share placing of 170.8 million shares at a price of 0.6 pence per share.
The company said the placing, which was conducted by Pareto Securities Ltd, was over-subscribed and the net proceeds will be applied towards completion of a definitive feasibility study on the company's Namib Lead-Zinc project in Namibia.
The definitive feasibility study is scheduled for completion during the first quarter, after which the company intends to submit its mining licence application.
In a separate statement, Imperial Minerals PLC, a natural resources investment company, announced that it has invested GBP422,300 in cash for 70.4 million shares in North River Resources, taking 41% of the placing.
Imperial Minerals investment represents 5.33% of the total shareholding at North River Resources.
North River Resources also announced Wednesday a drill-for-equity deal in which Wilhelm Shali, who owns the drilling and mining contractor operating the Namib site, will be paid in shares of North River rather than cash for drilling programmes.
The agreement has been initially established to cover the first GBP175,000 worth of invoicing for drilling activities, and shares will be issued at an equivalent of 0.6p each for works invoiced.
The company noted that drilling is currently on double shifts at the site to quickly expand its underground resources, which currently stand at 917,000 tonnes at 2.4% lead, 5.7% zinc and 44.8 grams per tonne of silver.
North River shares were up 4.2% to 0.625 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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