BlackGold Natural Resources to raise S$8.2 million through share placement

SINGAPORE - Catalyst-listed BlackGold Natural Resources will issue 66 million new shares at S$0.123 per share to raise up to S$8.2 million in capital, the company said on Friday (June 23).

The placement price of S$0.123 represents a discount of approximately 9.36 per cent to the volume weighted average price of S$0.1357 for trades done on the Catalist on June 19, 2017.

The company intends to use part of the net proceeds for its business investment purposes, including developmental expenses relating to the Riau 1 Project, and also to further strengthen its working capital position.

The Riau 1 Project is a joint cooperation project between BlackGold and China Huadian Engineering for the development of a coal-fired power plant in Riau province, Indonesia.

"We are very heartened by the support and strong interests received from the numerous investors who have participated in this placement exercise, which exudes confidence in the group," said Mr Philip Cecil Rickard, executive director and chief executive officer of the group.