Resolute Mining Limited (ASX:RSG) (LON:RSG) has raised approximately A$23.3 million in a well-supported share purchase plan (SPP) which forms part of an equity raising expected to exceed A$194 million.
The SPP, which closed on February 21, gave eligible shareholders the opportunity to participate in the equity raising and indicates broad support for the company's gold strategy.
There were valid applications received from 1,168 shareholders for more than 21.2 million shares at an issue price of $1.10 per share.
Resolute managing director and chief executive officer John Welborn thanked the company’s shareholders for their continued support.
He said: “The positive response to the SPP from shareholders is greatly appreciated.
“Proceeds from the SPP form an important part of the total equity raising proceeds which are being used to repay debt and strengthen the company’s balance sheet.
“Resolute is now well-positioned to focus on operational performance and delivery of our strategic objectives.”
Tranche two placement
The company’s equity raising plans include the completed tranche one institutional placement which raised $146 million, the completed SPP and a planned tranche two placement to raise A$25 million.
This placement, which is subject to shareholder approval at an extraordinary general meeting on Thursday, February 27, is expected to be settled during the week starting March 16, 2020.
Following completion of the equity raising, an application will be made for admission of all new shares issued to the official list of the Financial Conduct Authority (FCA), standard segment, and to trading on the London Stock Exchange’s main market for listed securities.
SPP indicative timeline
Participating shareholders will be issued the full number of SPP shares for which they applied, up to a maximum value of A$30,000 per holder, on March 3, 2020.
Holding statements are expected to be dispatched on March 4, with trading of the SPP shares to commence on the ASX on the same day.