Proceeds to be used for accelerating exploration in Argentina, Chile
By Marisa Wong
Madison, Wis., Dec. 9 - Mariana Resources Ltd. has completed a global private placement to raise £8 million, according to a news release.
The company issued 20 million ordinary shares at 40p per share.
Placement to investors in North America was conducted by lead manager Paradigm Capital Inc. and GMP Securities LP. Placement to investors outside of North America was brokered by finnCap Ltd. and the company's nominated adviser RFC Corporate Finance Ltd.
Proceeds will be used to accelerate exploration of the company's project portfolio in Argentina and Chile and for general corporate and working capital purposes. The company said its primary focus will be to fast-track exploration drilling at its flagship Las Calandrias gold discovery located in the prospective Deseado Massif gold district in southern Argentina and to define a resource and evaluate the economic potential of the project.
"We are very pleased with the strong institutional investor demand which exceeded our requirements," said John Horsburgh in the news release.
"This financing leaves us with a strong cash position and we intend to fast track Las Calandrias with a mix of exploration and resource definition drilling in the coming months. We also plan to deploy the funds to several other exploration initiatives on our extensive land packages in Argentina and Chile."
"[We] continue to work toward a listing on the Toronto Stock Exchange in early 2011 to capitalize on that Exchange's familiarity with South American exploration companies and the breadth of resource investors in Toronto."
Mariana is a Guernsey, Channel Islands-based mineral exploration and development company that holds a portfolio of gold, silver and copper projects in Argentina and Chile.
| Issuer: | Mariana Resources Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | £8 million
|
| Shares: | 20 million
|
| Price: | 40p
|
| Warrants: | No
|
| Agents: | Paradigm Capital Inc. (lead), GMP Securities LP for North America; finnCap Ltd., RFC Corporate Finance Ltd. for placement outside of North America
|
| Announcement date: | Dec. 9
|
| Stock symbol: | London: MARL
|
| Stock price: | 41.1p at close Dec. 8
|
| Market capitalization: | £74.82 million
|
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