Republic Gold Limited (ASX:RAU)
Brisbane, May 7, 2009 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) are pleased to announce that the Company has closed a Placement for A$750,000 at 2.0 cents per share ("Placement") and signed an Underwriting Agreement for a 1-for-4 renounceable Rights Issue to all shareholders also at a price of 2.0 cents per share ("Rights Issue"). The Rights Issue is fully underwritten by Patersons Securities Limited.
The funds raised from this financing will enable the Company to complete feasibility studies for its Amayapampa Gold Project in Bolivia and its Tregoora and Northcote Gold Projects in Far North Queensland.
Republic's Managing Director; John Kelly, said:
"The Company now has the funding certainty to complete its two feasibility studies and move to production. Both feasibility studies are progressing very well. In Bolivia, the Company's Technical Director Mr Neb Zurkic is currently on site reviewing the recent diamond drill core information, prior to the Company upgrading its mineral resource at Amayapampa. We'll then do some more metallurgy testwork to improve on the recoveries and finalise the study. At FNQ, we recently announced a resource upgrade, the completion of a number of the feasibility sub-studies and are working through the balance of the feasibility sub-studies. The successful application of the funds raised should enable the Company to be rerated as an emerging producer."
Details of the Issues
Both the Placement and sub-underwriting of the Rights Issue have been completed with Patersons' institutional and high net worth clients.
The terms of the Placement are as follows: -
- 37,500,000 shares placed at 2.0 cents per share to raise A$750,000 before costs.
- Each placement share has two free attaching options. One option is exercisable at 3.0 cents by 5 June 2010. The second option is exercisable at 4.0 cents by 5 June 2011. If all the options are exercised a further A$2,625,000 will be raised.
- It is expected that these options will be issued and listed on the ASX following the completion of the Rights Issue.
The terms and conditions of the Rights Issue are as follows:
- Pro-rata 1-for-4 issue of ordinary shares (New Shares) by the Company at 2.0 cents per New Share to all shareholders on the Company's share register at 4.00pm on the Record Date which is expected to be 18 May 2009.
- The Rights Issue is fully underwritten and will result in the allotment of 197,229,291 New Shares to raise A$3,945,000 before costs.
- Each New Share has two free attaching options. One option is exercisable at 3.0 cents by 5 June 2010. The second option is exercisable at 4.0 cents by 5 June 2011. If all the options are exercised a further A$13,806,000 will be raised.
- The Company will seek to have the options quoted on the ASX.
- The Rights Issue is renounceable with right's trading expected to commence on 14 May 2009 and conclude on 29 May 2009.
- The Rights Issue is expected to close on 5 June 2009.
- A Rights Issue Prospectus will be made available when the New Shares are offered under the Rights Issue.
- The Rights Issue Prospectus is expected to be lodged with ASIC on 8 May 2009. Once this is completed, it will be released to ASX along with an accompanying Appendix 3B.
- The Rights Issue Prospectus is expected to be sent to the Company's shareholders on 22 May 2009.
- The Company's shareholders should review and consider the Rights Issue Prospectus in deciding whether to acquire New Shares.
- Any of the Company's Shareholders wishing to acquire New Shares under the Rights Issue will need to complete an Application Form that will be in, or will accompany, the Rights Issue Prospectus.
An Investor presentation is attached to this announcement, Please see the link below;
http://www.abnnewswire.net/media/en/docs/60606-ASX-RAU-317662.pdf
Contact
John Kelly
Managing Director
Republic Gold Limited
Tel: +61-418-577-759
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