Africo wraps C$100 million private placement of units; Novera takes in £15 million from stock sale

By Devika Patel

Knoxville, Tenn., July 24 - Africo Resources Ltd. completed a C$100 million private placement of units by selling securities to one of its largest shareholders, and Novera Energy plc announced it has completed a £15 million sale of ordinary stock, which will help the company's wind development program.

Africo gets C$100 million

Africo Resources concluded a C$100 million private placement of units, which priced on April 21.

The company sold units at C$2.50 to Camrose Resources Ltd., which is owned by a trust for the benefit of family members of major shareholder Dan Gertler.

Each unit consists of one share and one half-share warrant, with each warrant exercisable for 18 months at C$3.50.

This placement results in Camrose owning about 60% of the company's outstanding share capital.

"Mr. Dan Gertler brings to Africo extensive business experience in the DRC, and a proven track record of successful mining investments and expertise," company chief executive officer Tony Harwood said in a press release at pricing.

"The private placement with Camrose will provide Africo with the equity funding required to advance the Kalukundi project."

"An integral part of our transaction with Camrose includes facilitating a speedy and successful resolution to the legal dispute over ownership of Swanmines," Harwood continued. "The acquisition of the Mashitu project owned by Camrose will provide Africo with project synergies and additional land to facilitate completion of its mining project as well as bringing additional resources in Africo to enhance shareholder value. A successful completion of the Akam acquisition would result in the re-establishment of Africo's interest in Swanmines and will benefit our shareholders, Gecamines and the DRC people alike."

The Vancouver, B.C.-based development-stage copper-cobalt company's shares (Toronto: ARL) jumped 12.64%, or 23 cents, on Thursday, to close at C$2.05.

Novera raises £15 million

London-based Novera Energy settled a £15 million private placement of stock in which it sold 19,485,083 ordinary shares at 77p per share to institutional and other investors and the company directors.

The net proceeds of £14.4 million will be used to further the company's wind development program, allowing the company to submit additional wind farm sites into planning, fund reservation fees, secure wind turbines, fund future wind projects and for working capital.

The company has submitted an application for its shares to begin trading on AIM. This deal is conditional upon the shares beginning to trade on the AIM exchange, which is slated to start on July 28.

"We are very pleased with the support shown by investors for this fundraising in what is an exciting phase in the company's development," Novera Energy chief executive officer David Fitzsimmons said in a press release.

"The proceeds of the placing allow us to continue to press ahead with our plans to further develop and enhance our wind portfolio, while the ability to put down turbine reservation fees will help us to bring future wind projects into operation more quickly. These developments will enable us to drive value for our shareholders."

The independent renewable energy company's shares (London: NVE) dropped 0.61%, or 0.5p, to close at 81p on Thursday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.