JOHANNESBURG (miningweekly.com) - Gemstone producer and developer Richland Resources has conditionally raised £1-million in funding through a share placement, enabling the company to achieve the final stage of production ramp-up at its Capricorn Sapphire mine, in central Queensland, Australia.
Richland placed about 133-million new common shares of $0.0003 each at an issue price £0.75 a placing share.
The company also agreed to issue about 55-million more new common shares in respect of the settlement of the unsecured loan facility of $500 000, entered into on June 27, together with a proportion of the accrued interest on that loan facility.
Richland chairperson Edward Nealon noted that the final stage of production ramp-up would follow a very successful optimisation and ramp-up programme in 2016, which enabled the Capricorn Sapphire mine to achieve its production ramp-up target, as well as decrease its cost per carat.
Nealon added that the newly raised funds would also allow for the company to implement its long-term sales model through its own beneficiation channels.