Rum Jungle Resources well supported by institutions in $7.235M placement.
Friday, December 07, 2012 by John Phillips
Rum Jungle Resources (ASX: RUM) has highlighted that significant amounts of new funds can still be raised in the current market when quality projects are being developed.
Rum has taken commitments to raise $7.235 million by the issue of 31.4 million shares at $0.24, which is a great outcome for a company with a market cap. of around $50 million. The placement was strongly supported by the company’s existing institutional shareholders.
The funds will be allocated to the company's two fertilizer projects in the Northern Territory.
More specifically - at the Ammaroo Phosphate the placement will fund the completion of a Feasibility Study by end 2013, and support a Scoping Study at the Karinga Potash project which is well under way.
Rum has already outlined a $10 million budget for 2013, with the company's cash position swelling to over $16 million following the placement - placing the company in a position to fast track progress and ensure major milestones are met on a timely basis. Of interest - last month Rum delivered an extensive presentation to Chinese companies.
