17/09/2013 - 12:35

Middle Island to tap investors for $5m

17/09/2013 - 12:35

Bookmark

Save articles for future reference.
Middle Island to tap investors for $5m

West Africa-focused gold hopeful Middle Island Resources has launched a $5 million share placement, satisfying one of the conditions of its acquisition of the Samira Hill gold mine and boosting working capital.

Middle Island said the placement would be made to professional and sophisticated investors, and be priced at 10 cents per share.

Bell Potter Securities is acting as lead manager to the placement.

Middle Island also announced a share purchase plan for existing shareholders, also priced at 10 cents per share.

Shareholders will be entitled to purchase up to $15,000 worth of new shares in the company under the purchase plan.

The company said the placement would satisfy one of the conditions of its proposed acquisition of the Samira Hill gold mine in Niger.

The Samira Hill mine was placed on care and maintenance by its owner, Niger’s Semafo, until the sale, which was initially announced in August, is completed.

Middle Island has agreed to pay $1.25 million in cash and a 1.2 per cent net smelter return royalty on any gold sold from the Samira Hill plant.

The Perth-based company said the cash component of the acquisition would be paid from existing reserves.

At 12:20PM, WST, Middle Island shares were steady at 11 cents. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options