GOOD RESULT!11 May 2020 08:48
Investors in the Placing include RAB Capital, a prominent UK special situation institutional investor who will hold 236,058,823 shares, representing 12.6% of the enlarged ordinary share capital of the Company following the Placing. RAB Capital are viewed as a long-term shareholder and have been granted a right to appoint a director to the board of the Company for as long as RAB Capital's interest remains at 10% or above.
The Placing proceeds net of expenses are expected to be approximately £3.5 million and will provide the Company with the funds to enable the closing of the c.US$260 million project financing of the Company's Tulu Kapi Gold Project (the "Project" or "Tulu Kapi"). This includes the anticipated initial closing of the Project level equity in Q2 2020, along with that of the identified debt funding in October 2020, which was set out in the Company's announcement on 24 April 2020 and included details of support for the local investors available from the Ethiopian Government if required. The start of full gold production at Tulu Kapi remains targeted for 2022.