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Tawana raises $5m, lifts trading halt

Tawana raises $5m, lifts trading halt

Photo by Bloomberg

8th April 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Tawana Resources lifted its trading halt on Tuesday after raising $5-million through a share placement to fund the prefeasibility study and associated engineering, design and resource upgrades for its Liberia-based Mofe Creek iron-ore project.

The company, which halted trading last Friday, placed 200-million shares to investors at an issue price of $0.025 apiece, intending to issue the shares on Friday.

The company also planned to raise up to $2-million through a share purchase plan with existing shareholders.

“The raising was well supported by both new investors and long-term advocates of the company and the Mofe Creek project. The quality of the register has greatly improved subsequent to this raising and the project is now well funded to advance its activities and potentially create value uplift for its shareholders,” Tawana executive chairperson Wayne Richards said in a statement.

The funds would be used to advance the design, engineering, environmental and logistics studies of the project to support an early start-up option and a larger long-term production project.

Edited by Creamer Media Reporter

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