JOHANNESBURG (miningweekly.com) – Aim-listed Beacon Hill Resources has entered into conditional subscription agreements with certain institutional investors, arranged by and including Darwin Strategic, to place up to 1.25-billion ordinary shares in the company to raise about £1.25-million.
The net proceeds of about $1.9-million, in addition to the company’s $1.6-million in existing cash, were required to provide Beacon Hill with adequate working capital to the end of the fourth quarter of the 2014 calendar year. This was the final target drawdown of $20-million in senior debt to be used to expand the company’s Minas Moatize wash plant, in Mozambique.
In addition, Beacon Hill stated that it would also grant warrants on the basis of one warrant for every two placing shares to the subscribers of the new shares.
These warrants would be exercisable at a price of 0.35p a share for three years.
The fundraising was still subject to certain conditions, including shareholder approval.