16th Jan 2014 12:28
LONDON (Alliance News) - Richland Resources Ltd Thursday said it has raised GBP2.8 million through the open offer and share placing announced in December.
The gemstone exploration, production and sales company, with operations in Tanzania, said valid applications were received for 52.1 million shares, or 44% of its open offer, at 3.4 pence per share, representing gross proceeds of GBP1.8 million for the company.
Richland also issued 28.9 million shares at 3.4 pence per share in a placing to existing and new shareholders for a further GBP980,000.
In December, the company said it was hoping to raise up to GBP4.0 million, so it fell short of that goal by GBP1.2 million. The funds will be used to fund capital expenditure at its TanzaniteOne mining Ltd mine site in order to restart two recently recovered mine shafts.
Richland Resources shares were up 3.1% to 8.25 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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