Proceeds to help acquire coal exploration tenements, fund exploration
By Devika Patel
Knoxville, Tenn., Oct. 18 - Newland Resources Ltd. said it will sell 265 million ordinary shares in a "heavily oversubscribed" private placement. Clients of Argonaut will be the investors.
Shareholders approved a placement of 200 million shares on Oct. 8.
The company will sell the shares at A$0.023 per share, a 42.5% discount to the closing share price on Oct. 15 of A$0.04, for A$6.1 million.
Newland is acquiring two granted coal exploration tenements and four coal exploration tenement applications covering approximately 1,900 square kilometers in the Bowen Basin region of Central Queensland. The company said existing mining operations in the area evidence the significant potential of the acquired projects, which have easy access to existing rail and port infrastructure.
Proceeds will be used to fund the acquisitions, repay the company's A$700,000 loan facility, begin exploration programs on the tenements and provide general working capital.
Based in Perth, Australia, Newland Resources is a mineral resources and financial services company.
| Issuer: | Newland Resources Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$6,095,000
|
| Shares: | 265 million
|
| Price: | A$0.023
|
| Warrants: | No
|
| Investor: | Argonaut clients
|
| Pricing date: | Oct. 18
|
| Stock symbol: | Australia: NRL
|
| Stock price: | A$0.038 at close Oct 18
|
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