12/05/2009 - 12:54

Tiger Resources launches $9m raising

12/05/2009 - 12:54

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Balcatta-based Tiger Resources plans to raise $9 million through a share placement to help pay for a majority interest in a copper project in the Democratic Republic of Congo.

Balcatta-based Tiger Resources plans to raise $9 million through a share placement to help pay for a majority interest in a copper project in the Democratic Republic of Congo.

The company has entered into an agreement with RBC Capital Markets to place 90 million shares at a discounted 10 cents to institutional and high net worth clients.

Shares in Tiger, which were previously in a trading halt, fell 0.5c to 13c at 14:29 AEST.

Funds generated from the placement will be used to acquire a 60 per cent interest in SEK, a company that owns the Kipoi copper project in DRC.

The remaining 40 per cent interest in SEK is held by Gecamines, a DRC government-owned entity.

Tiger aims to secure finance for stage one of the project in the September quarter and is targeting first production in the second quarter of next year.

The placement is subject to shareholder and regulatory approvals.

 

 

The announcement is below:

 


Perth-based emerging copper miner Tiger Resources Ltd (ASX/TSX - TGS) ("Tiger" or the "Company") is pleased to announce that it has entered into an agreement with RBC Capital Markets ("RBC") to raise A$9,000,000 on a best endeavours basis through a private placement of shares to institutional and high net worth clients of RBC in North America, Europe and Australia. The Company proposes to issue 90 million Shares (the "Shares") at a price of A$0.10 per Share pursuant to the placement.

The placement is scheduled to close during the week ended 22 May 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange. The total number of Shares to be issued pursuant to the placement exceeds the Company's 15% placement capacity under the Australian Securities Exchange Listing Rules. Therefore, the issue of Shares in excess of the 15% capacity will also be subject to shareholder approval. A general meeting for this purpose is proposed to be held in mid June 2009.

The net proceeds of the private placement secures the funds for the payment due in July 2009 in connection with the acquisition by the Company of a 60% interest in SEK sprl, a DRC registered company which has the rights to the Kipoi project in the Democratic Republic of Congo ("DRC"), and for working capital and general corporate purposes. The remaining 40% interest in SEK sprl is held by G├ęcamines, a DRC government owned entity.

Tiger is focused on the near term development of Kipoi based on an optimized feasibility study that significantly enhanced the economics of the project. Tiger is targeting securing project finance for Stage 1 of the planned development at Kipoi in the third quarter of 2009, and is targeting commencement of production in the second quarter of 2010.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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