Stirling Resources (ASX:SRE) To Finalise Monarch Gold (ASX:MON) Transaction
Perth, Dec 18, 2009 AEST (ABN Newswire) - Stirling Resources (ASX:SRE) will issue a new share entitlement issue Prospectus to raise approximately A$9.8 million to complete the recapitalisation of Monarch Gold (ASX:MON)(PINK:MARCF).
The Company had previously issued a Prospectus dated 13th October to raise funds however the Australian Securities and Investments Commission requested additional information to be included.
In order to resolve this issue and to enable Stirling to move forward the company agreed to the Australian Securities and Investments Commission placing a final stop order on the Prospectus dated 13th October and will today be issuing a new Prospectus.
The new Offer is being made as a Renounceable Entitlement issue of one new share for every share currently held, with an issue price of A$0.15 per share. It will also include one free attaching option for every new share issued, with a strike price of A$0.15.
The Prospectus outlining the entitlement issue will be dispatched to shareholders shortly.
The Offer is expected to close on 22 January 2010.
Any shareholders who subscribed for shares under the original Prospectus dated 13th October will be given the option of either placing the funds into the new Prospectus or receive a refund. Any investors who acquired rights under the original Prospectus will be given the option of acquiring shares in any shortfall under the new Prospectus.
Stirling's major shareholders Crawley Investments and DCM DECOMetal, which combined account for 35% of Stirling's equity, propose to take up their allocations under the entitlement. When fully subscribed, Stirling will have about 131 million shares on issue.
Stirling has already paid A$6.5m of the A$15.0m required for the Monarch Recapitalisation and the balance of A$8.5m will be paid on or before 29th January 2010 from the proceeds of the Prospectus.
Monarch shareholders have previously approved the change of name to Swan Gold Mining Limited once the Recapitalisation process is completed.
Managing Director Michael Kiernan commented that Swan Gold will be focused, upon settlement of the Recapitalisation Deed, on commencing the Carnegie open pit operations during February and the Mt Ida underground operations in July 2010.
For a corporate overview on Swan Gold, please visit;
http://www.stirlingresources.com.au
or
http://www.swangoldmining.com.au
Contact
Michael Kiernan
Managing Director
Tel: +61-8-6389-6800
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