Oversubscribed deal offers 23.86 million ordinary shares at 15.5p each
By Devika Patel
Knoxville, Tenn., Jan. 21 -African Eagle Resources plc announced it settled an oversubscribed private placement of shares. The company raised £3.7 million in the offering via brokers Seymour Pierce and Ocean Equities.
African Eagle sold 23.86 million ordinary shares at 15.5p apiece. The placing price represents a 1.64% premium to the closing price of 15.25p on Jan. 20.
Proceeds will be used to maintain the momentum of work on the pre-feasibility study and bankable feasibility study for the Dutwa nickel laterite project in Tanzania and for general working capital requirements.
"We are delighted to have received such a high level of support from new and existing institutional shareholders for this capital raising, which was oversubscribed," chairman Euan Worthington said in a press release. "With our brokers, we have been putting a lot of effort into explaining the Dutwa project to UK institutional investors. It recently became clear that there was strong demand for our shares, not only from existing shareholders but also from other institutional investors.
"Although we budgeted our current cash to be sufficient to complete the pre-feasibility study, we considered it prudent to have a reserve, in view of the weak pound and current inflationary trends. ... We are maintaining good progress on the Dutwa project and expect continuing news flow between now and the completion of the pre-feasibility study in Q3. We continue to deliver on our intention to spin out our legacy assets, with valuable deals already completed on uranium and gold projects. The Board recently delegated our COO, Chris Davies, to spin out our Zambian copper assets into a new vehicle, with a view to a listing or sale," Worthington said.
London-based African Eagle is a precious and base metals mining company, with a focus on nickel in Tanzania. It also has gold projects in Tanzania and copper projects in Zambia.
| Issuer: | African Eagle Resources plc
|
| Issue: | Ordinary shares
|
| Amount: | £3,698,300
|
| Shares: | 23.86 million
|
| Price: | 15.5p
|
| Agents: | Seymour Pierce and Ocean Equities
|
| Announcement date: | Jan. 21
|
| Stock symbol: | London: AFE
|
| Stock price: | 15.89p at close Jan. 21
|
| Market capitalization: | £58.68 million
|
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