BLACKGOLD NATURAL RESOURCES TO RAISE S$3.56 MILLION VIA SHARE PLACEMENT
- Issue of 39,511,654 million shares at S$0.0901 per share
- Gross proceeds of S$3.56 million for working capital
Singapore, 10 March 2017 – BlackGold Natural Resources Limited (“BlackGold” or the “Company” and together with its subsidiaries, the “Group”) is pleased to announce that the Group has signed a share placement agreement with Mr Johanes Budisutrisno Kotjo (“Mr Kotjo”) pursuant to which the Group intends to issue 39,511,654 new ordinary shares in the capital of the Company (the “Placement Shares”) at S$0.0901 per share to raise gross proceeds of up to S$3.56 million.
The rationale for the placement is to strengthen the working capital position of the Group. The Group has recently secured long-term coal sales to two large state-owned enterprises in Indonesia. The Company intends to use the entire net proceeds for general working capital of the Group.
Mr Kotjo has been a consultant of the Company since 30 March 2016. Having entered into his first resources venture in 1994 with a major mining player, Robert Friedland, he brings along more than 23 years of experience in the mining and energy industries, and has held various key roles in companies within the mining and energy sectors, including president commissioner of IDX-listed Apac Citra Centerfex from 1995 to 2015.
Mr Philip Cecil Rickard, Executive Director and Chief Executive Officer of the Group commented: “We are honoured to have such a successful entrepreneur on board as our new shareholder. The placement accentuates investor confidence in our future. The Group is heartened by Mr Kotjo’s confidence and participation, and are committed to continue delivering long-term value to our shareholders.”
The placement price of S$0.0901 per Placement Share represents a discount of approximately 9.9% to the volume weighted average price of S$0.10 for trades done on the Catalist of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 8 March 2017, being the last full market day on which the shares were traded prior to the date of the share placement agreement.
Pursuant to the allotment and issuance of the Placement Shares, the Company’s issued and paid-up share capital will increase from 788,708,783 shares, as at the date of this announcement, to 828,220,437 shares.
The sponsor of the Company, SAC Advisors Private Limited, will be making an application on behalf of the Company to the SGX-ST for the dealing in, listing and quotation of the Placement Shares on Catalist of the SGX-ST.