15th Sep 2015 08:41
LONDON (Alliance News) - North River Resources PLC on Tuesday said it will raise USD2.8 million through an open offer and placing of shares at 0.2 pence each, as part of its near-term financing plan to raise GBP4 million in total.
The AIM-quoted resource company has already received USD1.2 million from the issue of convertible loan notes to shareholder Greenstone Resources LP, which Greenstone will convert into ordinary shares if the open offer and placing raise the remaining GBP2.8 million, meaning there will be no drawdown under the underwriting facility.
In the event that the open offer does not raise the full GBP2.8 million, the directors have entered into an agreement with North River's broker, RFC Ambrian Ltd, to place the balance of open offer shares in order to raise the total amount.
North River said that under the open offer two shares will be offered for every three existing ordinary shares held, and that four directors have committed to subscribe for approximately GBP134,000 in shares in the placing.Chief Executive James Beams is taking 48.6 million shares, Brett Richards 3.2 million, Keith Marshall 10.0 million, and Ken Sangster 5.0 million.
The funds from the final amount will be used to progress its flagship Namib lead-zinc project in Namibia to a construction decision, the company said.
"Thanks to the support received from shareholders for the placing and open offer, we are pleased to commence this process which will see institutions, private investors and the company's directors aligned in our goal of delivering a robust, construction-ready lead-zinc project in Namibia. We look forward to completing this raising and updating shareholders accordingly," Beams said in a statement.
Shares in North River were trading down 11% at 0.182 pence on Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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