BlackGold raises $3.23m via private placement

By Romel S. Gurky

SGX-listed BlackGold Natural Resources Limited, which operates coal mines in Riau, Indonesia, said it has completed a private placement, raising gross proceeds of S$3.23 million.

The company said in a statement on Tuesday that 35,937,000 placement shares were allotted and issued, in accordance with the terms of a placement agreement, which was signed in March. The placement shares will be listed and quoted on the Catalist Board of the SGX-ST with effect from 9.00 a.m. on 19 April 2017.

Following completion, the total number of issued shares of the company has increased from 788,708,783 shares to 824,645,783 shares.

?The placement shares are issued free from all claims, charges, liens and other encumbrances whatsoever and shall rank, pari passu, in all respects with the existing issued shares save that the placement shares will not rank for any dividends, rights, allotments or other distributions, the record date for which falls on or before the date of this announcement,? the statement said.

The company has said it will use the net proceeds to further strengthen the working capital position of the group, and preliminary preparation work for the development of a 2 x 300 MW coal ? fired power plant in Riau province (the Riau 1 Project). The Riau 1 Project is a joint cooperation project with China Huadian Engineering Co., Ltd.

BlackGold Group is an Indonesia-focused coal mining company targeting Indonesia?s rapidly-growing power plant industry, with a specific focus on supplying coal to power plants located in Riau province.

Through its local subsidiaries, the group has the rights to three coal concessions in Riau, Indonesia. Currently, through its subsidiary PT Samantaka Batubara, the group has total JORC Code compliant coal resources of over 200 million tons.

Editing by Reiner Simanjuntak