BlackGold to further raise S$3.23m through second share placement
Monday, March 27 2017 - 01:38 AM WIB
SGX-listed coal firm BlackGold Natural Resources Limited announced Monday it has entered into a share placement agreement under which it will issue 35,973,000 new ordinary shares in the capital of the company at S$0.09 per share to raise gross proceeds of up to S$3.23 million.
The placement price of S$0.09 per placement share represents a discount of approximately 6.83 percent to the volume weighted average price of S$0.096 for trades done on the Catalist of the Singapore Exchange Securities Trading Limited (SGX-ST) on March 21, 2017.
The company 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, Indonesia (the Riau 1 Project). The Riau 1 Project is a joint cooperation project with China Huadian Engineering Co., Ltd., as previously announced by the Company on December 28, 2015.
The group has previously announced on March 10, 2017 that it had signed a separate placement agreement with Indonesian businessman Johanes Budisutrisno Kotjo for the proposed placement of 39,511,564 new shares in the capital of the company (the first placement) to raise gross proceeds of up to S$3.56 million. As of the date of this press release, the additional listing application in relation to the first placement has been submitted to the SGX-ST for approval.
Philip Cecil Rickard, Executive Director and Chief Executive Officer of the group commented: ?We are very encouraged by the strong interest from seasoned and accredited investors in BlackGold. This second placement further affirms investor confidence in the company?s growth prospects. The proceeds from this second placement will enable us to continue development plans for our assets.?
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.
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