Funds from oversubscribed deal for development of Achmmach Tin Project
By Marisa Wong
Madison, Wis., Oct. 18 - Kasbah Resources Ltd. said it plans to raise up to A$21 million through a stock placement with institutional and sophisticated investors.
The company will issue 87.5 million shares at A$0.24 per share. The price per share represents a 26.15% discount to the Oct. 13 closing share price of A$0.325.
The placement will be made in two tranches. The first tranche will consist of 35 million shares, and the second tranche is subject to shareholder approval at the company's annual general meeting to be held Nov. 26.
The company said it also intends to raise up to an additional A$3 million through a share purchase plan. It would offer shares to existing shareholders at the same price as the placement.
Hartleys Ltd. is the broker for the placement and share purchase plan.
The company said the placement was heavily oversubscribed by its major shareholders as well as by domestic and international investors.
Each of Kasbah's two largest shareholders, African Lion Fund and International Finance Corp., plans to subscribe for approximately A$3.3 million in the second tranche of the placement.
Proceeds will be used to complete the feasibility study and facilitate the acceleration of the drilling program to expand the resource base at the Achmmach Tin Project in Morocco.
"We thank our existing major shareholders for their continued support and welcome the addition of well regarded institutional investors from Australia, the UK and Asia to our register. The international profile of the Achmmach Tin Project is growing rapidly and this new funding will catalyse the transformation of Kasbah from a tin explorer to a tin producer," said Wayne Bramwell, Kasbah's managing director, in a news release.
Kasbah is a South Perth, Australia-based mineral exploration and development company whose prime commodity is tin.
| Issuer: | Kasbah Resources Ltd.
|
| Issue: | Shares
|
| Amount: | A$21 million
|
| Shares: | 87.5 million
|
| Price: | A$0.24
|
| Warrants: | No
|
| Agent: | Hartleys Ltd.
|
| Announcement date: | Oct. 18
|
| Stock symbol: | Australia: KAS
|
| Stock price: | A$0.34 at close Oct. 18
|
| Market capitalization: | A$79.5 million
|
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