05 November 2013
Placement completed at Nil Premium
Red Gum Resources Ltd (Company, ASX: RGX) is pleased to announce that it has undertaken a placement to sophisticated investors at $0.02 cents per share to raise $300,000 - prior to costs. The funds raised represent a nil premium to the last closing share price. 15 million new shares will be issued pursuant to this Placement, the Shares ranking equally with Shares which the Company currently has on issue. Shareholder approval is not required in relation to the issue of these new shares.
The funds raised are to be used to undertake necessary technical and legal due diligence associated with formation of a possible alliance with Rio Perdido Copper Limited, announced to the market on 30 October 2013, as well as existing working capital. D J Carmichael Pty Ltd and Sanston Financial Group Limited assisted with the placement.
Executive Chairman Dr Ray Shaw said that the raising will ensure that the Company can expeditiously pursue the possible alliance without impeding upon the momentum of its current activities - centred in Region IV of Chile. "That the placement was subscribed at a nil premium highlights the confidence investors place in the opportunity provided by the potential alliance with Rio Perdido Copper Limited" Dr Shaw noted.
Details of the exact form of the strategic alliance will be dependent upon the outcome of current negotiations and due diligence process that is expected to be completed within the coming weeks.
***ENDS*** For Further information please contact:
Ray Shaw, Executive Chairman + 61 8 8223 1680