February 13, 2013, 6:51 PM West Africa-Focused Golden Rim Seeks Funds For Exploration Article Comments Deal Journal Australia HOME PAGE »
By Gillian Tan
Golden Rim Resources Ltd. GMR.AU -2.17%is seeking 4 million Australian dollars (US$4.1 million) for further exploration, according to a term sheet seen by Deal Journal Australia.
The equity raising — led and underwritten by Patersons Securities — is a combination of a A$1.5 million and a one-for-eight rights issue, both done at 4 cents a share. That’s a 11.1% discount to the stock’s last-traded price of 4.5 cents.
The deal has A$2 million of cornerstone support, according to the term sheet, which says funds will be used for further exploration at several of the company’s projects in Burkina Faso, West Africa. Funds will also be used for working capital and to fund the acquisition of a 90% stake in its Korongou Gold Project.
Golden Rim entered a trading halt early Wednesday citing a capital raising. The stock has fallen 38.4% in the year-to-date, following falls of 33.6% in 2012 and 35.3% in 2011.
