24th Feb 2016 15:52
LONDON (Alliance News) - Sula Iron & Gold PLC on Wednesday said it raised GBP290,000 in a share placing, with the proceeds to go towards its Ferensola gold project in northern Sierra Leone.
The company is selling roughly 181.3 million shares at 0.16 pence each, with 90.6 million warrants to be granted to investors taking part in the placing. Each warrant comes with the right to subscribe for one share at the same price of the placing over the coming year.
Shares in Sula were down 17% at 0.195 pence on Wednesday afternoon.
"We are delighted to have raised these additional funds and with the continued interest from investors in our exciting gold project at Ferensola," Chief Executive Nick Warrell said.
Sula said its directors were unable to participate in the placing, a result of a "close period" ahead of publication of the company's audited accounts for the financial year that ended September 30, 2015.
Once those accounts are published, which the company expects to occur shortly, three top bosses plan on subscribing for a total of 12.5 million new shares at the placing price.
The board directors are Warrell and Non-Executive Director Howard Baker. In addition, Des Congdon, a director of the company's subsidiary, Blue Horizon (SL) Ltd intends to join them in investing the total GBP20,000.
By Samuel Agini; [email protected]; @samuelagini
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