- Golden Rim Resources (GMR) launches a $8.3 million capital raise, primarily to fund programs at its Kada gold project in Eastern Guinea
- The company expects to raise $2.44 million through a placement, while the remaining $5.89 million will be raised through a one-for-two non-renounceable entitlement offer
- Both the placement and entitlement offer will issue shares at 3 cents, which is a 9.1 per cent discount to the last closing price on December 6
- In other company news, GMR Chair Adonis Pouroulis will step down from his role to “focus on other interests”
- GMR shares are down 2.9 per cent, trading at 3.3 cents at market close
Golden Rim Resources (GMR) has launched an $8.3 million capital raise, primarily to fund programs at its flagship Kada gold project in Eastern Guinea.
A placement will aim to raise $2.44 million through the issue of 81.5 million fully paid shares at 3 cents each.
The remaining $5.89 million is set to be raised through a one-for-two pro-rata non-renounceable entitlement offer through the issue of 196.2 million new shares, also at 3 cents.
The issue price of 3 cents represents a 9.1 per cent discount to the last closing price of GMR shares on December 6, and a 14.9 per cent discount to Golden Rim’s 10-day volume-weighted average price.
GMR Director, Doug Jones has agreed to subscribe for $90,000 worth of shares under the placement, equalling around three million shares. However, this will require shareholder approval.
Golden Rim CEO Tim Strong said the commitments received for the capital raise “underlines the support” for the company and the Kada project.
“The fundraise will allow us to build on the 930,000-ounce gold resource discovered to date at the Massan prospect and establish the potential resource at the Bereko prospect, as well as initial exploration on additional early-stage targets,” he said.
“Kada has the potential to be Guinea’s, and West Africa’s, next big gold discovery.
“The team and I are excited for what will be a transformational year for Golden Rim.’’
The placement shares are set to be issued on December 16, while the entitlement offer will open on December 22 and close on January 13, 2023, before shares are issued on January 20, 2023.
In other company news, Chair Adonis Pouroulis will resign “in the near term.”
Mr Pouroulis joined GMR in January, 2020, but said he’s leaving to “focus on other interests.”
GMR has begun searching for his replacement.
GMR shares were down 2.9 per cent, trading at 3.3 cents at market close.