Riversdale prepares for capital raising
Updated: 11:41, Thursday July 15, 2010
Shares in Riversdale Mining Ltd have been placed in a trading halt, while the company prepares for a capital raising.
Riversdale was awaiting the outcome of late stage negotiations regarding a potential capital raising, the company said in a statement on Thursday.
Riversdale last month signed a non-binding memorandum of understanding with Chinese steel producer Wuhan Iron and Steel (Wisco), which is poised to take an eight per cent stake in Riversdale at $10 per share.
Wisco's eight per cent stake will come from Riversdale issuing new shares and will cost the Chinese firm about $200 million.
Wisco would also take a 40 per cent stake in Riversdale's Zambeze coal project in Mozambique.
The deal would help Riversdale fund its biggest coal project, the Zambeze coal play in Mozambique, which has an estimated nine billion tonnes over a strike length of 14 kilometres.
The deal with Wisco values Zambeze at $US2 billion ($A2.29 billion).Riversdale shares will remain in a trading halt until commencement of normal trading on Monday, July 19 or when the announcement is released to the market.
Riversdale shares last traded at $10.30
JUst great !!. Of all stock have to pick this one. What luck !! Could have actually sold NUF which plunge 25% today or $1.41 !!!!! ....Now have to wait for market to open for RIV on Monday.
ReplyDelete