Funds for acquisition of Cabral Resources, iron ore exploration
By Melissa Kory
Cleveland, Feb. 22 - RIMCapital said it raised A$25 million through a private placement of 125 million ordinary shares at A$0.20 per share.
The price is a 16.67% discount from the Feb. 10 closing share price of A$0.24.
The equity placement was conducted by Southern Cross Equities Ltd.
Proceeds will go towards the acquisition of Cabral Resources Ltd. and the exploration of its portfolio of magnetite iron ore assets in Bahia.
"We are now well funded for our exploration program of the iron ore tenement portfolio in Bahia, Brazil and will waste no time in getting underway," Albert Wong, RIMCapital chairman, said in a news release.
"This commences with the engagement of Promet engineers to develop a conceptual economic model, utilizing their Orval software, to establish minimum economic production conditions and hence resource base on our tenement portfolio."
The acquisition of Cabral, as part of which 30 million shares and 15 million future performance rights will be issued to the founders of Cabral, is expected to be completed on Feb. 25. RIMCapital's formal name change to Cabral Resources Ltd. is also expected to occur on Feb. 25.
The Cabral option agreement will be exercised on Feb. 28 via payment of A$7.2 million into an escrow account.
The company's shares are expected to recommence trading on March 2.
RIMCapital is a mining and investment company. It is located in Sydney, New South Wales, Australia.
| Issuer: | RIMCapital Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$25 million
|
| Shares: | 125 million
|
| Price: | A$0.20
|
| Agent: | Southern Cross Equities Ltd.
|
| Warrants: | No
|
| Settlement date: | Feb. 22
|
| Stock symbol: | Australia: RMC
|
| Stock price: | A$0.24 on Feb. 10
|
| Market capitalization: | A$25.04 million
|
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