(Alliance News) - Richland Resources Ltd on Monday said it has raised GBP150,000 through the placing of 105 million shares at 0.10 pence per share and a subscription for an additional 45 million shares at the same price.
The placing price represents a discount of around 31% to the closing price on Friday. Shares in the sapphire and gemstone company were down 26% at 0.11p each on Monday in London.
Richland intends to use the proceeds to fund a reverse takeover, or face its shares being cancelled from trading.
Following the sale of its Capricorn sapphire project in Australia to gemstone mining & marketing company Fura Gems Inc on January 2, Richland became a cash shell. According to AIM rules, the company has six months to complete a deal or its shares will be suspended from trading on AIM.
Following admission of the placing shares, Richland's share capital will be comprised of 1.02 billion shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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