(Alliance News) - Richland Resources Ltd is to look for further funding, it said Friday, as it looks to make an acquisition in the mining sector after becoming a cash shell.
On Thursday, Richland signed an option agreement to sell the Capricorn sapphire project in Queensland, Australia, with Canada's Fura Gems Inc.
Fura will pay USD185,000 in cash for Capricorn as well as 4.9 million new Fura shares.
Once this is completed, Richland will become a cash shell, and under AIM market rules it will have six months to make an acquisition, or become an investing company by raising at least GBP6 million.
The plan is to secure either debt or equity funding, as it looks for a new purchase in the mining sector.
Richland published 2018 results on Friday, showing a pretax loss from continuing operations of USD83,000, narrowed from USD848,000 the year before. There was no revenue, as it has no producing assets.
Shares were untraded on Friday afternoon in London, last quoted at 0.080 pence each.
