18/11/2008 - 14:15

Resolute nears capital raising of $72.5m

18/11/2008 - 14:15

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Resolute Mining has finalised details of its capital raising aiming to generate up to $72.5 million to complete the re-development and ramp up of the Syama gold project in Mali and maintain the company's other development activities.

Resolute Mining has finalised details of its capital raising aiming to generate up to $72.5 million to complete the re-development and ramp up of the Syama gold project in Mali and maintain the company's other development activities.

The Perth-based mining company has already received commitments from a number of it's major shareholders and clients of Patersons Securities to the tune of $50 million.

The raising will comprise a convertible note issue for up to $60 million by way of a placement of convertible notes to shareholders, clients of Patersons and the general public.

All convertible notes will be listed, have a face value of $0.50, an interest rate of 12%, convert into one share at the election of the holder and be for a four year term.

The company will also issue 1 free attaching option for every 3 convertible notes placed under the Issue.

Resolute will also raise up to $12.5 million by way of a non-renounceable pro rata offer to shareholders of 1 share for every 9 shares at an issue price of $0.40.

The company will also issue 1 free attaching Option for every 3 Shares subscribed for under the Pro Rata Offer.

All Resolute shareholders will be offered the opportunity to participate in the capital raising.

Resolute chief executive, Peter Sullivan welcomed the strong commitment by major shareholders as a vote of confidence in Syama and the company.

 

 

Full announcement below:

 

 

CAPITAL RAISING
Resolute Mining Limited (ASX: RSG) is pleased to announce it has finalised the details of its proposed capital raising, which supersedes that originally announced on 9 October 2008.

The Company proposes to raise a total of up to $72.5 million and commitments have already been received from a number of the Company's major shareholders and sophisticated investor clients of Patersons Securities Limited to subscribe for $50 million of this amount. All Resolute shareholders will be offered the opportunity to participate in the capital raising.

The proceeds of the capital raising will be used to complete the re-development and ramp up of the Syama gold project in Mali and maintain the Company's other development activities.

Resolute Chief Executive Officer Peter Sullivan welcomed the strong commitment by major shareholders as a vote of confidence in Syama and the Company.

First gold production from the Syama oxide circuit is imminent, with commissioning of the sulphide plant anticipated in the first quarter of 2009.

The capital raising will comprise of the following:

1. Convertible Note Issue for up to $60 million by way of a placement of Convertible Notes to Shareholders, clients of Patersons and the general public. Up to $10 million of the Convertible Notes will be offered to Shareholders of the Company on a priority basis. The Company will also issue 1 free attaching Option for every 3 Convertible Notes placed under the Issue. All of the Convertible Notes will be listed, have a face value of $0.50, an interest rate of 12%, convert into one share at the election of the holder and be for a four year term. The Convertible Note Issue will be made under a prospectus which will be sent in due course.

2. Up to $12.5 million by way of a non-renounceable Pro Rata Offer to Shareholders of 1 Share for every 9 Shares held at the record date where each Share is offered at an issue price of $0.40. The Company will also issue 1 free attaching Option for every 3 Shares subscribed for under the Pro Rata Offer. The Pro Rata Offer will be made
under a prospectus which will be sent in due course.

All of the options will have an exercise price of 60 cents, three year term and be listed.

Patersons has been appointed as Lead Manager of the capital raising.

Patersons will continue to build commitments from sophisticated investors to the issues in excess of the $50 million of support received to date.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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