INDOCHINE Mining Limited last week announced the successful completion of a recent placement and the accelerated institutional component of the two for four pro-rate non-renounceable offer, as part of a capital raising to raise up to approximately $26.3 million (K64.60 million).
A total of approximately $5.5 million (K13.51 million) has been raised from placement and the institutional offer from those existing eligible institutional shareholders whose offers under the entitlement offer the company has accelerated, subject to receipt by the company of final documentation. The institutional offer experienced strong support from its existing accelerated shareholders.
Current large shareholders are limited by an integral 10 per cent threshold and have indicated they would support the company in the balance of the issue.
In addition, the company has identified a number of quality institutions who are in advanced discussions with the company and which are considering an investment in the company by way of additional support of the balance of the entitlement offer, but were not able to participate within the accelerated timeframe.
Indochine’s chief executive officer, Stephen Promnitz said: “We are delighted with the support from our large global specialist resource investment mangers which the company has accelerated under the institutional offer. It was unfortunate due to technical issues that there were limited in this first phase of the offer. We welcome the new investors who have participated in the placement. We are also pleased that Indochine has been able to use this opportunity to identify further potential shareholders who are looking at providing additional support for the company as it moves to advance and develop the high grade gold zone at Mr Kare.”
Indochine also looks forward to welcoming participation from their remaining eligible shareholders when the balance of the entitlement offer to all eligible shareholders opens this week.
Settlement of the placement and the institutional offer is scheduled for tomorrow, with the new shares expected to commence trading on Wednesday. The balance of the entitlement offer to all eligible shareholders, will be at the same price and offer ratio as the wholesale offer will be open tomorrow. The offer is expected to close at 5pm Friday, November 1, raising up to approximately a further $20.8 million (K51.09 million).