Oversubscribed deal sold by Citigroup; proceeds fund Boikarabelo Mine
By Devika Patel
Knoxville, Tenn., Nov. 5 - Resource Generation Ltd. said it completed an oversubscribed private placement of shares. Citigroup Global Markets Australia Pty Ltd. was the lead manager and bookrunner.
The company sold 60 million shares at A$0.50 apiece for A$30 million. The price per share reflects a 12.28% discount to the Nov. 4 closing share price of A$0.57.
The shares will be issued in two tranches, with an initial, unconditional tranche of 27.4 million shares to be issued on Nov. 10 for A$13.7 million and the remaining 32.6 million shares to be issued for A$16.3 million upon the company receiving shareholder approval, which is expected to be granted at a general meeting on Dec. 3.
Proceeds will be used primarily for the rail link land acquisitions and access rights as well as other expenditure for the company's Boikarabelo Mine in South Africa and for working capital.
Based in Subiaco, Australia, Resource Generation explores and develops coal resources.
| Issuer: | Resource Generation Ltd.
|
| Issue: | Shares
|
| Amount: | A$30 million
|
| Shares: | 60 million
|
| Price: | A$0.50
|
| Warrants: | No
|
| Bookrunner: | Citigroup Global Markets Australia Pty Ltd.
|
| Announcement date: | Nov. 5
|
| Settlement date: | Nov. 10 (for A$13.7 million), Dec. 3 (for A$16.3 million)
|
| Stock symbol: | Australia: RES
|
| Stock price: | A$0.53 at close Nov. 5
|
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