West Perth-based gold and base metals explorer Hannans Reward Ltd will raise $5.5 million through a placement with private Chinese company Shandong Landbridge Group, the company has announced.
West Perth-based gold and base metals explorer Hannans Reward Ltd will raise $5.5 million through a placement with private Chinese company Shandong Landbridge Group, the company has announced.
The company will place 10 million shares at 55 cents each with Landbridge, in a move that will bring the Chinese investor's stake in Hannans to 11.6 per cent.
The full text of a company announcement is pasted below
- On 17 April 2007 Hannans Reward Ltd (ASX: HNR) announced a Placement had been agreed with the Shandong Landbridge Group ("Landbridge") to raise AUD5.5 million through the issue of 10,000,000 shares at 55 cents.
- The 1st tranche of the Placement (AUD2 million) was completed on 1 May 2007 resulting in the issue of 3,636,363 fully paid shares to Landbridge (representing a 4.55% interest in Hannans Reward Ltd).
- Landbridge have requested an extension of time within which to complete the 2nd tranche of the Placement (AUD3.5 million) due to the recent approval of the transfer by the Central Government and the subsequent additional time required for China Development Bank to process the approval. Hannans Reward Ltd has extended the date for completion of the Placement through to 31 August 2007.
- Hannans Reward Ltd's cash balance at 30 June 2007 was AUD4.5 million.
Summary
Shandong Landbridge Group ("Landbridge") (www.landbridge.com.cn) is a respected large private Chinese company based in Rizhao, Shandong Province, China. The Company has business interests including infrastructure construction and management, oil refining and timber milling.
By way of further background, Hannans Reward has been advised that Landbridge is the only private Chinese company to be granted the right to build own and operate a port in the Shandong Province.
The port is located in the city of Rizhao and is strategically located to supply petroleum to industry and iron ore to major steel mills. Landbridge is also the only private Chinese company in the Shandong Province to have a joint venture with the Chinese Government owned oil company Sinopec.
Landbridge wishes to build a presence in Australia and to gain access to raw materials. Landbridge has chosen to enter the Australian resources industry via a strategic investment of AUD5.5m in Hannans Reward Limited.
The investment comprises a placement of 10,000,000 shares at AUD0.55. Subject to completion of the placement in two tranches, Landbridge will be the second largest shareholder in Hannans Reward Ltd (11.6%). The first tranche (AUD 2 million) was completed on 1 May 2007. The completion date for the second tranche (AUD 3.5 million) has been extended through to 31 August 2007.
