Strategic Investment at a Premium to Market From Major Shareholder
London, Oct 14, 2013 AEST (ABN Newswire) - Baobab Resources Plc (
LON:BAO)is pleased to announce the continued support by its cornerstone shareholder, African Minerals Exploration & Development SICAR SCA ('the Fund'), through a significant investment at a 15% to the prevailing market.
Commenting today, Jeremy Dowler, Baobab's Chairman, said: 'The Company is very pleased to receive such a firm show of support from its principal shareholder in what is a challenging market. Not only is the placing at a significant 15% premium, but also signals the Fund's strong belief in the Company's immediate and longer term prospects.
'The first tranches of funding enable Baobab to accelerate key components of the bankable feasibility study this year, which will address and mitigate areas of perceived risk and optimise flow sheets. Looking forward, the proposed structure will also provide a mechanism to underwrite the remaining work programme, ensuring a premium to any future transactions. Baobab's board of directors therefore unanimously recommend the terms of the placement to shareholders.'
To view the announcement, please visit:
http://media.abnnewswire.net/media/en/docs/76041-bao_20131011.pdf
About Baobab Resources plc
Baobab Resources plc (LON:BAO) is a Mozambican-focused explorer with a large landholding in the central north of the country. The company's flagship project is the Tete iron ore deposit.
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