SINGAPORE, Jun 26 – BlackGold Natural Resources Ltd (SGX:41H), a mining Company targeting Indonesia and her rapidly growing power plant industry, is pleased to announce a share placement agreement (the ‘Placement’) by which it will issue up to 66,703,000 new ordinary shares at S$0.123 per share, to raise gross proceeds of up to S$8.2 million.
BlackGold will use the net proceeds for business investment purposes, including development expenses relating to the Riau 1 Project, and to further strengthen its working capital position. The placement price at S$0.123 per share represents a discount of 9.36% to the weighted average BlackGold share price on June 19 at the Singapore Exchange (‘SGX’), Catalist Market.
Riau 1 is the Project proposed by BlackGold and China Huadian Engineering Co., Ltd. (together the ‘Consortium’) to develop a 2 x 300 MW coal – fired power plant in Riau province, Indonesia, as announced on December 28, 2015. The Consortium had participated in a bidding process to provide electrical power to Indonesia state-owned company PT Perusahaan Listrik Negara (“PT PLN”).
Further to a Ministerial Regulation by Indonesia’s Ministry of Energy and Mineral Resources in February 2017, the Bid can now be awarded by direct appointment. Subject to winning the Bid, and entry into the relevant power purchase agreement with PT PLN, the Consortium will construct and commission the Project, enabling it to produce and supply the electrical power to PT PLN.
Mr Philip Cecil Rickard, BlackGold Executive Director and CEO commented: “We are very heartened by the strong interest and support demonstrated by the investors who are participating in this placement. These proceeds will further augment our readiness for the Project as we await the outcome of the Bid from PT PLN.” SAC Capital Private Ltd has been appointed Placement agent to procure subscribers on a best efforts basis.
The Placement is subject to the fulfillment of certain conditions, including approval by the SGX. The sponsor of the Company, SAC Advisors Private Ltd, will be making an application on behalf of the Company to the SGX for the listing, quotation and dealing in the Placement Shares on the SGX Catalist. This Release should be read in conjunction with the Company Release posted at SGX-Net on June 23, 2017.
