West Perth-based gold explorer Barra Resources Ltd has finalised arrangements with stockbroker RM Capital to raise $7.5 million for work on its gold and metals projects.
The company will issue 18.7 million shares at 40 cents each to raise the money, along with a further 18.7 million free attaching options.
The full text of a company announcement is pasted below
The Company is pleased to advise that it has today formalised arrangements with stockbrokers RM Capital Pty Ltd (AFSL 221938) ("RM Capital") to raise up to $7.5 million before costs by way of a placement of up to 18.75 million ordinary shares at an issue price of 40 cents per share together with 18.75 million free Attaching Options.
The placement is being undertaken pursuant to the "excluded offer" provisions (Section 708) of the Corporations Act.
Funds raised from the Placement will principally be applied towards the following:
- Aggressively extend underground drilling of the existing gold resource and known extensions plus underground and above ground drilling of new targets at the Burbanks Gold Project;
- Undertaking ongoing exploration and development activities at the Mt Thirsty Nickel- Cobalt-Manganese Project; and
- General working capital and new project opportunities.
While the issue of the shares is within the Company's existing 15% share issue capacity, the Attaching Options are subject to shareholder approval.
The Attaching Options shall be exercisable at 65 cents each on or before 31 December 2010.
In addition to a fee of 6% of the funds raised from the Placement, the Company will issue RM Capital 1,000,000 options on the same terms as the Attaching Options.
Funds from the Placement are expected to be received by 24 October 2007. Shareholder approval for the issue of the Attaching Options shall be sought at the Annual General Meeting scheduled for Friday 23 November 2007.
