- Bauxite explorer Lindian Resources (LIN) receives a binding commitment from a high net worth investor to raise $2 million
- The money will be raised through the issue of 20 million fully-paid ordinary shares priced at 10 cents each – a 163 per cent premium to the 15-day volume-weighted average price
- Additionally, 10 million options will be issued to the investor, exercisable at 12 cents with an expiry three years from issue
- Lindian will use the money to pursue the potential acquisition of Rift Valley Resources Development and its Kangankunde Project in Malawi
- Lindian shares are trading 4.65 per cent higher on the market at 9 cents at 11:29 am AEST
Bauxite explorer Lindian Resources (LIN) has received a binding commitment from a high net worth investor to raise $2 million.
The money will be raised through the issue of 20 million fully-paid ordinary shares to the investor at a price of 10 cents per share.
This price represents a 16 per cent premium to Lindian’s last closing price and a 163 per cent premium to the 15-day volume-weighted average price.
Additionally, Lindian will issue 10 million options to the investor, exercisable at 12 cents with expiry three years from issue.
The company will use the money to pursue the potential acquisition of Rift Valley Resources Developments and its Kangankunde Project in Malawi.
Lindian is also in discussions with multiple other potential investors that are interested in providing further funding regarding the acquisition.
“We are pleased to have secured this investment at a premium to the company’s current market price, and the confidence that it demonstrates regarding [our] ability to successfully close negotiations regarding the potential acquisition of Rift Valley Resources Developments and its Kangankunde Mining Project,” Chairman Asimwe Kabunga said.
“Lindian will keep shareholders abreast of future developments in this regard.”
Lindian shares were trading 4.65 per cent higher on the market at 9 cents at 11:29 am AEST.