THE BOURSE WHISPERER: Renaissance Minerals (ASX:RNS) has received firm commitments from sophisticated and institutional investors to raise gross proceeds of $10 million through a share placement.
The company said the Placement was strongly supported by new and existing institutional and sophisticated investors within Australia and overseas.
Renaissance indicated it intends using the funds raised by the Placement to accelerate exploration activities within the company’s Cambodian gold project.
The company is targeting increases in the existing resources from the Okvau gold deposit and from surrounding drill ready targets.
Renaissance has already defined a JORC-compliant indicated and inferred resource estimate at the Okvau gold deposit of 12.6 million tonnes at 1.8 grams per tonne for 729,000 ounces of gold.
Okvau gold deposit Resource estimate. Source: Company announcement
The Placement consists of 55.55 million new shares to be issued at a price of 18 cents per share to raise total funds of $10 million.
The shares will be issued in two tranches:
– Tranche 1 – comprising 39.40 million shares at 18 cents to raise $7.1 million, to be issued immediately, in accordance with ASX Listing Rules; and
– Tranche 2 – comprising 16.15 million shares at 18 cents to raise a further $2.9 million, to be issued subject to shareholder approval at a meeting of shareholders to be held in mid-November 2012.
“This $10 million raising places the company in the strongest financial position it has been in and allows for the acceleration of an aggressive exploration program at the company’s Cambodian gold project in the forthcoming dry season – approximately from mid-November onwards,” Renaissance Minerals managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.
“The Directors of Renaissance Minerals Limited recognise the ongoing support that we continue to receive from our existing shareholders, including OZ Minerals, and welcome the new shareholders to the register.”
Renaissance pointed out OZ Minerals(ASX:OZL), the company’s major shareholder, has agreed to participate in the Placement to the amount of $1.5 million.
The company said its participation will be deducted from the $5 million deferred consideration payable to OZ Minerals under the Sale and Purchase Agreement for the Cambodian gold project.
The remaining $3.5 million obligation will be paid in January 2013.
OZ Minerals’ participation will fall under Tranche 2 of the Placement.