BAO news26 Mar 2012 09:43
Baobab Resources plc
Placing of new ordinary shares to raise £2.76 million
Baobab Resources plc ("Baobab" or the "Company"), the iron ore, base and precious metals explorer with a portfolio of mineral projects in Mozambique is pleased to announce that it has raised £2.76 million (before expenses) through a placing by Shore Capital Stockbrokers Limited of 23,000,000 new ordinary shares of 1p each (together the "Placing Shares") at a price of 12p per Placing Share (the "Placing"). The Placing utilisesthe full extent of Baobab's existing authority to issue shares for cash.
The proceeds of the Placing will, primarily, assist the Company to fund work on the Tete Pre-Feasibility Study ("PFS") on its core iron ore assets in Mozambique.
Jeremy Dowler, Chairman of Baobab, commented:
"We are pleased to welcome the new shareholders to the register and this funding will allow us to advance our Pre-Feasibility Study on our flagship Tete project strategically located in the emerging mining hub of the Tete province, Mozambique, one of Africa's fastest developing economies, with unique access to existing and expanding power and infrastructure as well as abundant coal reserves