Riedel Resources (ASX: RIE) ('Riedel' or 'the Company') is pleased to announce it has received firm commitments for a two-tranche placement of new shares to investors to raise $1.0 million in cash before costs ('Placement').
The Company will also offer a Share Purchas Plan ('SPP') to eligible shareholders to raise up to an additional $0.3 million at the same price as the Placement.
Riedel's Chairman, Scott Cuomo, said: 'We are pleased to receive support for this capital raising from both new and existing investors. Strong gold prices, renewed interest in domestic mining, and increased regional exploration activity in south-west USA, have enhanced the value of our Kingman Project. The funds raised will allow us to advance exploration and study work at the project's high-grade Tintic deposit, along with exploring potential processing options within the region
Placement
The placement involves the issue of 40,000,000 new fully paid ordinary shares ('Shares') at an issue price of $0.025 per share to unrelated professional and sophisticated investors. The Placement comprises: the unconditional placement to raise a total of $347k through the issue of 13,882,395 new Shares utilising available placement capacity under ASX Listing Rules 7.1 (8,322,787 shares) and 7.1A (5,559,608 shares) ('Tranche 1') and the conditional placement to raise a total of $653k through the issue of 26,117,605 new shares subject to shareholder approval that will be sought at a General Meeting of the Company to be held in or around July 2025 ('Tranche 2').
The issue price represents a 7.4% discount to the last close price on 17 June 2025 of $0.027 per Share. 708 Capital Pty Ltd ('708 Capital') acted as Sole Lead Manager to the Placement. 708 Capital (or its nominee/s) will be paid a 2% management fee and a 4% selling fee. 708 Capital (or its nominee/s) will also be issued 10,000,000 Broker Options, subject to shareholder approval. These options will be exercisable at $0.06 per share and will expire three years from the date of issue. Oracle Capital Group Pty Ltd ('Oracle Capital') (or its nominee/s), a related party of Riedel Chairman, Scott Cuomo, will receive a broker fee comprising a management fee, selling fee and Broker Options in proportion to its allocation in the Placement, subject to shareholder approval at the General Meeting under Listing Rule 10.11.
Share Purchase Plan
The Company is also undertaking a non-underwritten SPP targeting to raise up to $0.3M. Existing eligible shareholders with a registered address in Australia, New Zealand or United Kingdom on the Company's register as at 7:00 pm AEST on Thursday, 19 June 2025 will have the opportunity to apply for up to $30,000 worth of new fully paid ordinary shares in Riedel. Shares issued under the SPP will be at the same price as the Placement, being $0.025, and will rank equally with existing ordinary shares from the date of issue. The SPP is scheduled to open at 9:00 am AEST on Friday, 27 June 2025 and will close at 5:00 pm AEST on Friday, 18 July 2025 (unless extended or close earlier at the discretion of the Company). The terms and conditions of the SPP will be set out in the SPP Offer Booklet, which is expected to be released to the ASX on Friday, 27 June 2025. A letter will be dispatched to Eligible Shareholders via their preferred method of contact on the same date.
Contact:
Scott Cuomo - Chairman
Riedel Resources Limited
Level 2, 480 Collins Street, Melbourne VIC 3000
Tel: + 61 3 9614 0600
Email: admin@riedelresources.com.au
About Riedel Resources Limited:
Riedel Resources Limited is an emerging mineral exploration company focused on advancing the historic high-grade Kingman Gold Project in north-west Arizona, USA.
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