LONDON (Alliance News) - Blenheim Natural Resources on Wednesday said it has raised GBP640,000 though a share placing which will see fellow London-listed firm African Potash Ltd take a stake in the company.
Blenheim will issue 80.0 million shares at 0.8 pence per share to raise the funds, though it did not define how it plans to use the money. Shares in the company were down 20% on the placing to 1.0p.
As part of the placing, African Potash has subscribed for 8.8 million shares in the company, giving it a 4.7% stake in Blenheim.
Under the terms of the investment, Chris Cleverly, the executive chairman of African Potash, has joined the board of Blenheim as a non-executive director.
African Potash shares were down 4.8% to 1.7621p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Blenheim Natural Resources (BNR)