Business
Conditional share placing for a minimum of UK&#...
Conditional share placing for a minimum of UK&#....
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Conditional share placing for a minimum of UK£6.25 and maximum of UK£10 million Interim US$7.50 million loan facility For immediate release23 December 2013Serabi Gold Plc(\"Serabi\" or the \"Company\")Conditional share placing for a minimum of UK£6.25 and maximum of UK£10 millionInterim US$7.50 million loan facilitySerabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold exploration and development company, announces that it intends to raise up to £10 million (before expenses) through an issue of new Ordinary Shares, to finance initial development and underground drilling at the Sao Chico project, and to provide further working capital to the business during the start-up phase of gold production at Palito (\"Subscription\").The Company has entered into a conditional subscription agreement (\"Subscription Agreement\") with Fratelli Investments Limited(1) (2) (\"Fratelli\"), the Company's major shareholder, which has agreed to subscribe for a minimum of UK£6.25 million and a maximum of UK£8.125 million.The Company will be seeking subscriptions from third party investors, on the same terms as the subscription by Fratelli, for up to a further UK£1.875 million. Fratelli will increase their minimum subscription of UK£6.25 million by matching the aggregate subscriptions from third parties for up to a maximum commitment of UK£8.125 million. In addition, Fratelli has provided an interim secured short term loan facility of US$7.5 million (equivalent to UK£4.6 million) to the Company (\"Loan Agreement\") to provide additional working capital and to enable initial development activity at Sao Chico to commence, whilst the conditions of the subscription agreement are met.The Subscription Agreement is conditional, inter alia, on the approval of the independent shareholders of the Company, on a poll at a general meeting of the waiver of any obligations of Fratelli to make a general offer to shareholders pursuant to Rule 9 of the City Code on Takeovers and Mergers. Drawdown under the Loan Agreement is subject to a number of conditions, including the execution of security agreements.Mike Hodgson, CEO of Serabi said;\"This capital injection allows the Company to progress the next stage of development and evaluation of the Sao Chico project. Our intention over the coming months is to start construction of the mine portal a...