(Sharecast News) - Richland Resources announced on Thursday that the disposal of its wholly-owned subsidiary Richland Corporate, which holds the Capricorn Sapphire Project, to Fura Gems, completed on 31 December.
The AIM-traded firm said that as a result, Fura had paid the total cash consideration of $1.25m (£0.95m) due under the disposal, of which $0.88m was paid directly to the lender in order to settle the total amount outstanding under the company's pre-existing secured convertible loan facility.
It said the balance of the consideration would be used by the firm to pay transaction costs and certain other outstanding creditors, and to provide additional working capital as it worked to identify a suitable reverse takeover transaction in the mining sector.
Following the successful completion of the disposal, Richland Resources said it had become an AIM Rule 15 cash shell and, as such, was now required to make an acquisition constituting a reverse takeover under AIM Rule 14 within six months.
"Alternatively, within such time period, the company can seek to become an investing company pursuant to AIM Rule 8, which requires, inter alia, the raising of at least £6m and [the] publication of an admission document," the board explained in its statement.
"In the event that the company does not complete a reverse takeover under AIM Rule 14 within such six month period or seek re-admission to trading on AIM as an investing company pursuant to AIM Rule 8, the company's common shares would be suspended from trading pursuant to AIM Rule 40.
"Thereafter, if a re-admission transaction has not been completed within a further six month period, admission to trading on AIM of the company's common shares would be cancelled."
At 1114 GMT, shares in Richland Resources were down 13.79% at 0.12p.
23 Jul 2014 15:14