Aguia Resources Limited : Share Placement Raises $1.68 Million and Announcement of Proposed Share Purchase Plan
July 3, 2013 (Source: Aguia Resources Limited) — Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company”) is pleased to announce that it has received firm commitments for a placement of 33,630,000 million new ordinary shares at $0.05 per share to raise a total of $1,681,500 million before costs (the “Placement”). The Placement has been well supported by a number of new and existing sophisticated and professional investors.
The Company confirms that under ASX Listing Rule 7.1 and 7.1A, approval for the issue by Aguia shareholders is not required.
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As part of the Placement, the Directors of the Company have agreed to subscribe for 2.05 million shares totaling $102,500. The issue of the shares to the Directors as part of the Placement will be subject to shareholder approval at a meeting expected to be held in the next two months.
The funds raised under the Placement will be used to supplement the Company’s existing working capital and to provide funding for further testing of Aguia’s Rio Grande phosphate projects in Southern Brazil.
Aguia is also pleased to announce that it proposes to offer shareholders the opportunity to participate in a capital raising on the same terms as the placees via a share purchase plan (“SPP”). Further details on the SPP will be released in the coming weeks.
Aguia’s Managing Director, Mr. Simon Taylor said: “The success of this placement, including participation by the majority of the Company’s directors and several new investors, at what is a difficult time for junior resource companies, is a positive reflection on the quality of the Company’s exploration assets”.
The Company anticipates that the suspension from trading of the Company’s securities will be lifted today with formalities associated with the Placement to be concluded early next week.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>