Sihayo completes 44.2 million shares settlement

By Peni Pedriawan

ASX-listed firm Sihayo Gold Limited recently announced it has completed the tranche 2 settlement of the recently announced A$13 million share placement, consisted of approximately 44.2 million shares at A$0.15 per share to raise A$6.6 million before costs pursuant to the placement.

"The share placement has been very strongly supported by the company?s major shareholders. And pleasingly a new Indonesian based investor has also participated in a significant way demonstrating a strong confidence in the project and the region," the company said in a statement.

Proceeds raised will allow the company to complete the final stage of the Definitive Feasibility Study, pursue further resource extension drilling at the Sihayo Pungkut Gold Project, undertake resource exploration drilling across multiple ?high impact? exploration targets within the company?s Contract of Work (?COW?) area, and place any required orders for long-load items for the proposed CIL Gold Plant and the Biomass Power Station prior to December 2012.

The company has also recently authorized the issue of 44,176,244 fully paid ordinary shares at 15 cents each in response to the successful completion of the A$13 million fund raising, in which the shares have been issued and allotted as part of a class of securities quoted on the ASX and may be subject to subsequent offer for sale.

Editing by Er Audy Zandri