West African gold company Papillon Resources has raised $12.4 million through a placement to accelerate exploration across its Mali gold projects.
West African gold company Papillon Resources has raised $12.4 million through a placement to accelerate exploration across its Mali gold projects.
Papillon issued 22.5 million shares at 55 cents each to national and overseas institutions.
In a statement to the Australian Securities Exchange, Papillon said that the placement had been allotted mainly to North American, Asian and Australasian institutional clients of joint lead managers Hartleys Limited and Argonaut Securities.
The placement was heavily oversubscribed.
"We are extremely pleased to have attracted such a high level of institutional support for this capital raising," said managing director of Papillon Alan Campbell.
"Funds raised from the placement will put us in a strong financial position and allow Papillon to continue to accelerate our exploration activities on our Mali projects," he said.
See company statement below:
West African gold company Papillon Resources Limited ("Papillon" or "the Company") (ASX: PIR) is pleased to announce that the Company has raised $12.4 million (before costs) through a placement to national and overseas institutions of 22.5 million shares at $0.55 each.
The placement has been allotted mainly to North American, Asian and Australasian institutional clients of joint lead managers Hartleys Limited and Argonaut Securities Pty Ltd. The placement was heavily oversubscribed. It is proposed that the new shares will be allotted under the Company's existing capacity under Listing Rule 7.1 and commence trading on ASX on 21st December 2010. On completion of the capital raising Papillon's cash position will increase to approximately $15 million. This cash position includes funds from the anticipated exercise of 'in the money' options expiring 31st December 2010.
The funds raised pursuant to the capital raising will be used primarily to accelerate exploration across Papillon's Mali gold projects including drilling and metallurgical testwork which is already underway at the Medinandi Gold Project (Figure 1: Mali West and Table 1) and a multi-rig auger drilling programme to commence in Q1 2011 at the emerging prospects in Mali South (Figure 2: Mali South and Table 2).
Commenting on the transaction, Mr. Alan Campbell, Managing Director of Papillon, said "We are extremely pleased to have attracted such a high level of institutional support for this capital raising. Funds raised from the placement will put us in a strong financial position and allow Papillon to continue to accelerate our exploration activities on our Mali projects. We look forward to the next 12 months with great confidence."
Papillon expects that this announcement will result in the lifting of the suspension of trading in the securities of Papillon Resources Limited.
Full details of the above and the original releases to the ASX upon which they are based (inclusive of all associated figures and tables) are available at asx.com.au or from Papillon's website at: www.papillonresources.com
