Singapore Web Developer

News & Media

BLACKGOLD NATURAL RESOURCES TO RAISE FURTHER S$8.2 MILLION THROUGH SHARE PLACEMENT

  • Issue of 66,703,000 million shares at S$0.123 per share
  • Gross proceeds of S$8.2 million for the Group’s business investment purposes and to further strengthen its working capital position

Singapore, 23 June 2017 – BlackGold Natural Resources Limited (“BlackGold” or the “Company” and together with its subsidiaries, the “Group”) is pleased to announce that the Group has entered into a share placement agreement (the “Placement”) pursuant to which the Group intends to issue up to 66,703,000 new ordinary shares in the capital of the Company (the “Placement Shares”) at S$0.123 per share to raise gross proceeds of up to S$8.2 million.


The placement price of S$0.123 per Placement Share represents a discount of approximately 9.36% to the volume weighted average price of S$0.1357 for trades done on the Catalist of the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 19 June 2017.


The Company intends to use part of the net proceeds for its business investment purposes, including developmental expenses relating to the Riau 1 Project, and also to further strengthen its working capital position.


The Riau 1 Project is a joint cooperation project between BlackGold and China Huadian Engineering Co., Ltd (the “Consortium”) for the development of a 2 x 300 MW coal – fired power plant in Riau province, Indonesia (the “Riau 1 Project”, or “Project”), as previously announced by the Company on 28 December 2015. The Consortium has participated in a bidding process (the “Bid”) to provide electrical power to the Indonesia state-owned company, PT Perusahaan Listrik Negara (“PT PLN”). Further to a Ministerial Regulation by Indonesia’s Ministry of Energy and Mineral Resources in February 2017, the manner of award of the Bid can now be made by way of direct appointment. Subject to the successful awarding of the Bid to the Consortium and entry into the relevant power purchase agreement with PT PLN, the Consortium shall construct and commission the Project to enable it to produce and supply electrical power to PT PLN.


Mr Philip Cecil Rickard, Executive Director and Chief Executive Officer of the Group commented: “We are very heartened by the support and strong interests received from the numerous investors who have participated in this placement exercise, which exudes confidence in the Group. The proceeds from this placement augments our readiness for the Project as we await the outcome of the Bid from PT PLN.”


SAC Capital Private Limited has been appointed as the placement agent to procure subscribers for the Placement on a best endeavours basis. The Placement is subject to the fulfilment of certain conditions, including approval from the SGX-ST.


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.


– End –