Rey Resources (ASX:REY) will no longer have Crystal Yield Investments, as a direct investor in the Duchess Paradise coal project in Western Australia's Canning Basin, but will see Crystal invest in Rey via a share purchase.
Crystal will subscribe for an additional $1.36 million in Rey shares at $0.08 and it will become a 19.9% shareholder in Rey.
Crystal will receive 53,571,429 Rey shares in consideration for the $3 million payment received for Stage 1, and a further 17,000,000 Rey shares pursuant to the placement, taking Crystal’s relevant interest to 125,571,429 Rey securities.
Jin Wei, a principal of Crystal, is proposed to become a non-executive director on the Rey board, expected to be effective prior to year's end.
Crystal is a privately held investment company based in Hong Kong, and currently holds a relevant interest in 55 million shares in Rey, via its parent Ricky Holdings.
The $1.36 million to be raised via the placement will provide Rey with a total cash balance of $6.5 million, sufficient to finance its oil and gas exploration activities to the end of 2014.
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