By Susanna Moon
Chicago, Oct. 23 - Rey Resources Ltd. said it plans to raise A$15 million from a A$10 million institutional placement and a A$5 million underwritten share purchase plan.
Rey will sell 75 million shares at A$0.20 each. Rey will also sell 50 million shares to institutions at A$0.50 each.
Proceeds will be used to finance a feasibility study on the Canning Basin coal project and further exploration drilling on Rey's exploration leases in the Canning Basin as well as general working capital.
"This capital raising is a landmark transaction for Rey," Rey chairman Julian Ludowici said in a press release. "As a junior company we have been working for a number of years to have the potential of the Canning Basin recognized.
"The recent corporate interest in the company and emerging thermal coal supply deficits in key Asian markets have contributed to increased awareness of Rey's potential value.
"This substantial capital raising will enable Rey to unlock value for the benefit of all its stakeholders and, assuming positive results from the pre feasibility study due for completion in December 2009, to commence a full feasibility study."
BBY Ltd. is lead manager to the institutional placement and underwriter to the A$5 million share purchase plan.
The placement requires shareholder approval at a meeting on Nov. 27.
Rey is a Sydney, Australia-based company engaged in resources exploration and mineral project evaluation.
| Issuer: | Rey Resources Ltd.
|
| Issue: | Stock
|
| Amount: | A$15 million
|
| Shares: | 75 million
|
| Price: | A$0.20
|
| Warrants: | No
|
| Manager: | BBY Ltd.
|
| Pricing date: | Oct. 21
|
| Stock symbol: | Australia: REY
|
| Stock price: | A$0.25 at close Oct. 21
|
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