GTI Resources seeks funds for RI nickel opportunity
Wednesday, March 26 2014 - 04:11 AM WIB
ASX-listed GTI Resources Ltd is seeking funds to among others help finance nickel mining opportunity in Indonesia the company is pursuing.
On Tuesday GTI announced a Share Purchase Plan offer to all eligible shareholders. The Share Purchase Plan will provide eligible shareholders on the share register as at 5.00 pm Perth time on 25 March 2014 with the opportunity to subscribe for up to $15,000 worth of shares at a subscription price of 2 cents per share, it said in a statement.
The issue price of the new shares represents a discount of 20% to the volume weighted average price of GTI?s shares during the last 5 days on which sales of shares were recorded up to and including 25 March 2014, being the date immediately preceding this announcement.
Full details of the Share Purchase Plan will be set out in the Offer Memorandum which is expected to be released to ASX on 27 March 2014 and sent to shareholders on 28 March 2014.
The Share Purchase Plan is expected to open on 28 March 2014 and close on 17 April 2014.
In accordance with the ASX Listing Rules, the maximum number of shares which may be issued under the Share Purchase Plan is 12,950,000 shares, being 30% of the current issued share capital of GTI. This offer is for the issue of up to 12,950,000 new shares.
Shareholder approval will not be sought for the Share Purchase Plan.
The proceeds from the Share Purchase Plan will be applied towards:
? Advancing the Indonesian nickel opportunity the company is perusing;
? Ongoing exploration of GTI?S existing mining tenements located in Western Australia; and
? GTI?s general working capital requirements.
According to its website, the company has recently established a presence in Indonesia through a local consulting group, giving access to an expanded network of contacts within the mining sector and a Jakarta base from which to operate. This development builds on contacts and visits made during 2008 to both Indonesia and Singapore, including project evaluations.
Editing by Reiner Simanjuntak