Business
Placing to raise approximately £0.5 million gross
Placing to raise approximately £0.5 million gross.
About this update from Power Metal Resources Plc
[{"type":"text","content":"\n \nRNS Number : 3314Z Sula Iron & Gold PLC 14 March 2017 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.\nThis announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any investment decision in respect of Sula Iron & Gold Plc or other evaluation of any securities of Sula Iron & Gold Plc or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities.\n14 March 2017\nSula Iron & Gold plc\n(\"Sula\" or the \"Company\")\nPlacing to raise approximately £0.5 million gross\n \nSula (AIM: SULA), the gold exploration company focused on Sierra Leone, is pleased to announce that it has conditionally raised approximately £0.5 million (before expenses) through a placing by VSA Capital Limited and Madini for, in aggregate, 128,594,765 new ordinary shares of 0.1p each in the Company (\"Ordinary Shares\") (the \"New Ordinary Shares\") at an issue price of 0.40p per share (the \"Issue Price\") (the \"Placing\").\nThe Issue Price represents a discount of approximately 13.0 per cent. to the Company's closing middle market share price of 0.46p on 13 March 2017.\nThe Placing has been targeted at a small number of investors, including two existing shareholders and a strategic long-term investor from Asia, who are seeking to support the growth of the Company as it continues to de-risk and develop the Ferensola Project.\nUse of Proceeds\nThe net proceeds of the Placing will primarily be used:\n· to extend ongoing diamond drilling at Sula's Ferensola gold project both at Sula's high conviction Eastern Target and at Sanama Hill, which already hosts a JORC Compliant Exploration Target of 5-7Mt at a grade of between 4.0-8.0g/t for between 0.8-1.5Moz of contained gold;\n· to assess potential drilling of Sula's 4.5km of strong Induced Polarisation (\"IP\") anomalies beyond the current drill programme;\n· for other potential regional exploration programmes; and\n· ...