6th Sep 2013 08:40
LONDON (Alliance News) - Red Leopard Holdings PLC said Friday that it had conditionally agreed to acquire special-purpose vehicle Red Leopard Mining Inc. for GBP600,000 in a reverse takeover involving the issuance of 33.3 million new Red Leopard Holding shares at 1.8 pence per share.
Red Leopard Holding also said it had placed 70.0 million new shares at 0.5 pence per share to raise GBP350,000. The money raised will be used to start exploring the claims held by Red Leopard Mining and to provide working capital.
Red Leopard Mining was established in 2013 as a holding company for 205 unencumbered claims for areas in North America that are known to be rich in silver. These claims were transferred from Polaris Resources, a subsidiary of Quest Minerals Corporation and cover around 1,435 hectares or 3,546 acres. The company has not generated any profits since its incorporation, although the claims have a value of USD33,465.
Red Leopard Holding said that because its share placement was at price below the current 1p nominal value of Red Leopard Holding shares, it would conduct a 10-for-1 share split to reduce the nominal value to 0.1p.
In addition to the placement, Red Leopard Holding will issue a further 13.2 million new shares to directors John May and Simon Michaels and proposed director Stuart Adam, in lieu of salaries and fees accrued to August 31, on the basis of 1 new share for each 0.5p in fees owed.
Following all the transactions, the company will have 225.0 million shares in issue.
Red Leopard Holdings is a property and hospitality company. Its shares were trading down 7.7% at 1.20 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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