Placement
Perth, Dec 13, 2017 AEST (ABN Newswire) - Image Resources NL (
ASX:IMA) (Image or the Company) is pleased to announce a placement of 40,000,000 new ordinary shares at an issue price of 10 cents per share to qualified institutional and sophisticated investors to raise $4,000,000 (before costs) (Placement).
The Placement was significantly oversubscribed and the funds raised will enable the Company to continue to advance planning and preparations for the development of the Company's 100%-owned, high-grade, high-zircon Boonanarring Project, whilst finalising a binding debt term sheet, which is currently expected to be signed at the end of January 2018.
Commenting on the placement, Managing Director Patrick Mutz said:
"Funds raised will be applied to early works related to planning and securing certain longer lead items for the continued advancement of the Company's Boonanarring Project, as well as project finance activities, including due diligence and legal documentation, and general working capital. The Company is pleased to recognise the ongoing support and commitments it has received from existing shareholders and the vote of confidence via commitments received from new shareholders."
New shares will be issued pursuant to existing capacity under Listing Rule 7.1 with settlement expected on Monday, 18 December 2017.
Euroz Securities Limited (Euroz) acted as sole lead manager to the Placement. In October, Euroz published an independent research note on the Company which can be viewed on our website.
About Image Resources NL
Image Resources NL (ASX:IMA) is a mineral sands focused mining company operating an open-cut mine and ore processing facility at its 100%-owned, high-grade, zircon-rich Boonanarring Project, located 80km north of Perth in the infrastructure rich North Perth Basin.
Boonanarring is arguably one of the highest grade, zircon-rich mineral sands projects in Australia. Construction and project commissioning were completed on-time and on-budget in 2018. Production commenced in December 2018 and HMC production ramped-up to exceed name-plate capacity in only the second month of operation.
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