11th Aug 2015 07:52
LONDON (Alliance News) - North River Resources PLC on Tuesday said it has proposed a USD4 million financing package to be used to back the development of its Namib lead-zinc project in Namibia.
North River said the entire USD4 million financing will be underwritten by major shareholders Greenstone Resources LP and will be split between the issue of convertible loan notes and a placing and open offer.
Greenstone will initially acquire USD1.2 million worth of the convertible loan notes, with the remaining USD2.8 million to then be raised via a placing and open offer. No details were given on the pricing of the shares or the conversion price attached to the notes. North River intends to launch the placing in September, subject to shareholder approval.
"The proposed fundraising, which has been structured to allow qualifying shareholders the opportunity to participate, will enable the company to commence initial [front-end engineering design] and continue mine development work ahead of receipt of the mining licence," said North River Chief Executive James Beams.
"This is in line with our vision to develop the Namib project into an efficient and commercial production asset in Namibia for relatively low capital expenditure. While the licence application process has prompted some slippage in the development schedule, we are confident that this will soon be forthcoming," Beams added.
Shares in the company were untraded early Tuesday, having last traded at 0.262 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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