Savannah Resources (LON:SAV) – CORP: Subscription
Market Cap: £18m; Current Price: 4p
Directors and Major shareholders invest £825,186
Savannah Resources has raised £825,186 through a direct subscription from Directors and its major shareholder at 3.5p. This amount is in addition to the £1,420,000 raised 26/09/16.
Major shareholder, Al Marjan maintains its 29.99% interest with a £685,370 subscription.
David Archer, Savannahs CEO, maintains his 5.77% interest with a £129,816 subscription.
Matthew King, Savannahs Chairman, has subscribed for £10,000 representing a holding of 0.2%.
As a result of this transaction, the Company will have 449,446,455 shares in issue.
NORTHLAND CAPITAL PARTNERS VIEW: As expected, Savannah Resources’ major shareholder and Directors continue to support the business and have taken part in a subscription to raise £825,186. The parties were not able to take part in the placing completed 26/09/16 as the Company was in a closed period.
Vast Resources (VAST.L): Fund raise
Market Cap: £10m; Current Price: 0.32p
From yesterday: Northland raises US$5m in convertible loan notes
Northland Capital Partners has raised US$5m in an interest free and unsecured convertible loan notes for Vast Resources.
Vast has initially subscribed for US$2m from Bracknor Fund Limited but can, at its option, subscribe for three additional tranches of US$1m over a two year period.
Bracknor can convert at any time during a 12 month period after the subscription at a price equal to 90% of the lowest VWAP of shares in the five preceding business days before the conversion. Vast or Bracknor can opt to repay the convertible in cash at a 15% premium to the face value in the event of a major transaction.
Bracknor will receive warrants equal to 20% of the nominal loan value of each tranche, that are exercisable at a 130% premium to lowest VWAP of shares in the five preceding business days before the conversion.
Bracknor has undertaken not to directly or indirectly, take any action designed to result in the stabilisation or manipulation of the Company’s share price to facilitate the purchase or resale of shares.
NORTHLAND CAPITAL PARTNERS VIEW: The capital that Vast Resources receives from this fund raise will allow the Company to make major strides forward at a number of its key projects. The convertibles will be exercised at small discount to the share price and Bracknor is leveraged to the successful performance of the Company and its share price through the warrants. The funds will be used at the Manalia Mine to fund the ongoing refinement of the zinc production line and to develop a separate processing unit to produce gold and silver, increasing revenue and profitability. It will also be used towards a drill programme to expand the JORC resource at the Mine. At Baita Plai Project the funds will be used towards the drilling, evaluation and design of the Faneata Tailings Dam reprocessing facility and the initial payments associated with the project.