4th Jul 2019 10:45
(Alliance News) - Richland Resources Ltd on Thursday said it has raised GBP100,000 through a share placing to provide additional working capital until the completion of the proposed disposal of its Capricorn sapphire project to Fura Gems Inc.
On Thursday last week, Richland signed an option agreement to sell Capricorn, located in Queensland, Australia. Fura will pay USD185,000 in cash for Capricorn as well as 4.9 million new Fura shares.
Once this is completed, Richland will become a cash shell, and under AIM market rules it will have six months to make an acquisition, or become an investing company by raising at least GBP6 million.
Turning back to the fundraising, the Australian sapphire producer said it issued 158.7 million shares at a price of 0.063 pence each. The placing price represents a discount of 16% to the closing price of Richland shares of 0.075p on Wednesday.
Richland shares were trading 13% lower on Thursday in London at 0.0655p each, giving it a market capitalisation of GBP372,272.
The company said the placing was arranged via Peterhouse Capital Ltd, which is due 5% commission on the gross proceeds of the placing. It has agreed to be settled by the issue of 7.9 million Richland shares.
In addition, Peterhouse has been appointed as the company's sole broker with immediate effect.
Following the admission, the company will have 750.9 million shares overall.
Related Shares:
RLD.L