Rick Hart-led Renaissance Minerals is hoping to raise $2.52 million via a share placement to sophisticated and institutional investors, to accelerate gold exploration at its Eastern Goldfield tenement.
Rick Hart-led Renaissance Minerals hopes to raise $2.52 million via a share placement to sophisticated and institutional investors, to accelerate gold exploration at its Eastern Goldfield tenement.
Gryphon Minerals, the company's major shareholder, has agreed to participate in the placement to maintain its 16 per cent shareholding.
Nine million shares will be issued at 28 cents each in one tranche.
BGF Equities and Max Capital are co-managers to the placement.
"The Directors of Renaissance Minerals Limited welcome the new shareholders to the register and believe their extensive investment experience in gold exploration companies will be an asset to Renaissance as it seeks to advance its projects," said Renaissance Minerals managing director Justin Tremain.
"We also recognise the ongoing support that we continue to receive from our existing shareholders, including Gryphon Minerals."
In a statement to the Australian Securities Exchange Renaissance said as well as accelerating exploration at the Eastern Goldfield tenement it was preparing to commence a Diamond core and Reverse Circulation drilling program at the recently acquired Pinjin Gold Project.
See company statement below:
Australian gold exploration company, Renaissance Minerals Limited (ASX code: RNS) is pleased to announce that it has entered into agreements with new sophisticated and existing institutional investors to raise $2.52 million through a share placement.
The Company's major shareholder, Gryphon Minerals Ltd, has agreed to participate in the placement to maintain its 16% shareholding.
The placement consists of 9 million new shares to be issued at a price of $0.28 per share to raise total funds of $2,520,000. The shares will be issued in one tranche under the Company's 15% capacity, pursuant to ASX Listing Rule 7.1, subject to the Company's 15% capacity being refreshed at the upcoming annual general meeting.
The Company intends to issue the shares on 18 November 2010.
BGF Equities and Max Capital acted as co-managers to the placement.
Renaissance Minerals Managing Director Justin Tremain said:
"The Directors of Renaissance Minerals Limited welcome the new shareholders to the register and believe their extensive investment experience in gold exploration companies will be an asset to Renaissance as it seeks to advance its projects.
We also recognise the ongoing support that we continue to receive from our existing shareholders, including Gryphon Minerals."
The funds raised will be used to accelerate aggressive exploration programs at the Company's +3,000km2 Eastern Goldfields tenement package. In particular, the Company is preparing to commence a Diamond core and Reverse Circulation drilling program at the recently acquired Pinjin Gold Project.
The Pinjin Gold Project covers the Pinjin and Rebecca Palaeochannel systems that are host to numerous placer gold intersections up to 30g/t gold. First past drilling by Newmont returned significant results including 5.9m @ 7.2g/t gold in fresh rock that have had limited follow up work.
This announcement effectively lifts the trading halt that the Company requested on Wednesday, 3 November 2010. The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.
