Riversdale reports successful capital raising for expeditious project in Africa
Africa-focused resource firm Riversdale Mining Ltd (ASX: RIV) announced on Monday that it has completed the first phase of the firm's $276 million capital raising which should be partially allocated for the accelerated development of its Benga project in Mozambique.
The company said that it had wrapped up the $174 million institutional component of the accelerated pro-rate entitlement offer and a $102 million share placement, adding that the miner issued the shares at $9.40 each, which was below the price from which the stock last traded at $10.20.
Riversdale said that funds raised so far under the entitlement should partly provide for the company's equity component in the advanced development of its Benga coal project in Mozambique, where it is looking for an output of 20 million tonnes per annum by 2013.
The company specified that raised finances would be utilised "to fund scope upgrades to Benga Stage 1, accelerated logistics development for the Benga Coal Project, working capital for Benga Stage 1, and exploration of Riversdale's other Mozambique tenements."
Riversdale said that beginning on Wednesday eligible retail shareholders would be able to join the capital raising with the same terms as the institutional offer as it added that the retail entitlement, scheduled to close at 1700 AEST on August 6, is fully underwritten and should reach its target of $61 million.
Company executive chairman Michael O'Keefe thanked shareholders for supporting the company as he emphasised that "this result demonstrates the confidence that shareholders have in Riversdale's development and exploration plans."