BlackGold to raise S$3.56m via share placement
Friday, March 10 2017 - 04:09 AM WIB
SGX-listed BlackGold Natural Resources Limited announced Friday the group has signed a share placement agreement with Indonesian businessman Johanes Budisutrisno Kotjo pursuant to which the group intends to issue 39,511,654 new ordinary shares in the capital of the company (the placement share) at S$0.0901 per share to raise gross proceeds of up to S$3.56 million.
The company said in a statement the rationale for the placement is to strengthen the working capital position of the group. The group has recently secured long-term coal sales to two large state-owned enterprises in Indonesia. The company intends to use the entire net proceeds for general working capital of the group.
BlackGold said Kotjo has been a consultant of the company since 30 March 2016. Having entered into his first resources venture in 1994 with a major mining player, Robert Friedland, he brings along more than 23 years of experience in the mining and energy industries, and has held various key roles in companies within the mining and energy sectors, including president commissioner of IDX-listed Apac Citra Centerfex from 1995 to 2015.
Philip Cecil Rickard, Executive Director and Chief Executive Officer of BlackGold commented: ?We are honored to have such a successful entrepreneur on board as our new shareholder. The placement accentuates investor confidence in our future. The group is heartened by Kotjo?s confidence and participation, and are committed to continue delivering long-term value to our shareholders.?
The placement price of S$0.0901 per placement Sshare represents a discount of approximately 9.9 percent to the volume weighted average price of S$0.10 for trades done on the Catalist of the Singapore Exchange Securities Trading Limited (SGX-ST) on March 8, 2017, being the last full market day on which the shares were traded prior to the date of the share placement agreement.
Pursuant to the allotment and issuance of the placement shares, the company?s issued and paid-up share capital will increase from 788,708,783 shares, as at the date of this announcement, to 828,220,437 shares.
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, the statement said.
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