22/09/2010 - 11:27

Signature plans $13.4m capital raising

22/09/2010 - 11:27

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Signature Metals hopes to raise $13.4 million through a rights issue and a placement to accelerate the exploration and development of its Konongo Gold Project in Ghana.

Signature plans $13.4m capital raising

Signature Metals hopes to raise $13.4 million through a rights issue and a placement to accelerate the exploration and development of its Konongo Gold Project in Ghana.

Signature will issue up to 500 million shares at an issue price of 2 cents each to raise $10 million in the placement.

The company will also undertake an additional 1 for 8 renounceable entitlements issue at 2 cents per share to raise approximately $3.4 million.

Signature said Patersons Securities will underwrite the placement.

The placement will be issued in two tranches.

The funds will be used for drill testing, preparation for plant commissioning and initial production, and fast tracking studies into expanding production.

 

 

See company statement below:

Signature Metals Limited (Company) is very pleased to announce the raising of up to A$13.4 million via a rights issue and placement to accelerate the exploration and development of the Konongo Gold Project in the world class Ashanti Gold Belt.

The Company has secured firm commitments from subscribers to participate in a placement by which the Company will raise $10 million (before costs) through the issue of up to 500 million shares at an issue price of 2 cents each (Placement). Patersons Securities have been appointed Lead Managers for the Placement.

In addition to the Placement the Company will undertake a 1 for 8 renounceable entitlements issue at 2 cents per share to raise approximately $3.4 million (Offer). The Offer is intended to be fully underwritten by Patersons Securities Limited and will be made pursuant to a prospectus to be lodged at ASIC in the near future (Prospectus).

The successful completion of the Placement and Offer will place the Company in a strong financial position to accelerate its aggressive exploration programme. Funds raised pursuant to the Placement and Offer will be used for:
- Drill testing of high quality targets delineated in recent exploration and drill campaigns,
- Preparation for plant commissioning and initial production (upon receipt of an environmental permit),
- Upgrade site infrastructure in preparation for mining and processing,
- Purchase adequate supplies of reagents amd spare for the CIL plant for the first three months of production,
- Fast track studies into expanding production from the Project.

The Placement will be issued in two tranches. The first tranche of 177 million shares will be issued immediately prior to lodgement of the Prospectus at ASIC under the Company's existing capacity under Listing Rule 7.1. Recipients of shares under the first tranche of the Placement will be eligible to participate in the Offer.
The issue of the second tranche of 323 million shares is conditional on shareholders approving the issue of those shares at the annual general meeting of the Company to be held as soon as practicable.

 

 

 

 

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