- Riedel Resources (RIE) has received firm commitments to undertake a $1.87 million share placement
- The funds will be raised through the issue of roughly 125 million new shares to institutional, sophisticated and professional investors at 1.5 cents
- Riedel will use the money to undertake a 5000-metre reverse circulation drilling program at the Kingman Gold Project in Arizona
- The company will follow up on the high-grade mineralisation previously intersected of 98.9g/t gold and 323g/t silver
- Riedel has ended the day down 5.88 per cent with shares trading at 1.6 cents apiece
Riedel Resources (RIE) has received firm commitments to undertake a $1.87 million share placement.
The company entered a trading halt on June 3 but did not disclose how much it intended to raise or what it would use the funds for.
The funds will be raised through the issue of roughly 125 million new shares to institutional, sophisticated and professional investors at 1.5 cents.
Riedel will use the money to undertake a 5000-metre reverse circulation drilling program at the Kingman Gold Project in Arizona.
The company will follow up on the high-grade gold and silver mineralisation intersected at Tintic which peaked at 98.9g/t gold and 323g/t silver.
“We are particularly pleased with the support from both new investors and existing shareholders which we believe demonstrates the quality of the company’s Kingman Project,” Chairman Michael Bohm said.
“Our drilling will focus on the Tintic area and our US-based team, which successfully carried out the last program on time and on budget, eagerly awaits commencement of drilling.”
Shares are expected to settle on June 11 with quotation on June 15.
Riedel ended the day down 5.88 per cent with shares trading at 1.6 cents apiece and a $14.30 million market cap.