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Riversgold seeks to net $1.9 million from capital raising

Funds raised will be spent towards managing the full potential of the company’s assets as well as to seek complementary acquisition opportunities.

Riversgold Ltd - Riversgold to undertake capital raising of $1.9 million
The company will undertake a placement and a non-renounceable rights issue

Riversgold Ltd (ASX:RGL) has entered into an agreement with Ostana Pty Ltd to assist with a capital raising of about $1.9 million by way of a $400,000 placement and $1.5 million non-renounceable rights issue.

Funds will be applied towards managing and realising the full potential of the company’s underlying assets, as well as to seek complementary acquisition opportunities.

Implementation of the capital raising is subject to shareholder approval with the company set to organise a meeting in early October.

Key terms

The company will undertake a placement to sophisticated or professional investors of up to 40 million fully paid ordinary shares at an issue price of 1 cent per share to raise $400,000;

Existing directors will convert $100,533 of accrued directors fees into shares at a conversion price of 1 cent per share.

Riversgold will undertake a non-renounceable rights issue based on one new share for every share held on the record date, at an issue price of 1 cent to raise up to $1,511,815.

Subject to shareholders approving the placement at the meeting, Riversgold intends to conduct the placement as soon as possible.

Ostana will act as lead manager to the placement and funds raised will be used to continue work on the company’s existing assets and to meet working capital needs.

The company will issue Ostana 35 million options each with an exercise price of 2 cents expiring three years from the date of issue.

Board changes

As part of the capital-raising exercise, non-executive directors Aaron Colleran and Kevin Hart have resigned from the board and have been replaced by Justin Boylson, Simon Andrew and Michael Davy.

Boylson is an experienced commodity trader and resource project manager with over 25 years’ experience and has an extensive resource and commodity-based knowledge of Australia, South East and North Asia and their markets.

Andrew has more than 20 years’ experience in financial markets in Asia and Australia and previously held senior management positions at various global investment banks.

Davy is an Australian executive and accountant with over 15 years’ experience across a range of industries. He is also a director and owner of a number of successful private businesses.

Chairman Roderick Webster remains in the role but will transition to a non-executive role and Boylson will assume an executive role within the company.

The company thanks Colleran and Hart for their contributions.

Quick facts: Riversgold Ltd

Price: 0.056 AUD

ASX:RGL
Market: ASX
Market Cap: $21.78 m
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