News blog

Strategic Natural Resources

  • BY: Andrew Hore |
  • POSTED: 13/05/2014 |

Strategic Natural Resources is raising £1.5m at 4p a share and it is also revamping its board.

Target Alliance London Ltd, which is owned by South African businessman Irving Aronson. is subscribing for £1m worth of shares and Beaufort Securities will underwrite a £500,000 share issue. The £6m loan from Land Consultants Ltd has been extended to the end of March 2015 in return for a fee of £100,000 and the right to convert up to £2m in interest into shares at 4p each.

Target has received a £600,000 loan from Emesis Management, which has the option to take the shares instead of a cash repayment. Target will also transfer 1.875m shares to Beaufort as part payment for its services. Beaufort will also receive £75,000 cash commission. The net proceeds of the fundraising will be £1.3m.

The cash will be used to pay off some of the creditors of the business. SNR hopes to settle with rolling stock provider Thelo. London Commodity Brokers has agreed to withdraw the winding up petition in return for the settlement of $1.15m in cash and shares. However, more cash will be required to pay off all creditors and reopen the Elitheni coal mine in South Africa.

Elitheni chairman Niall Mellon will take 10m shares in lieu of money owed.

As part of the fundraising deal Alexander MacDonald will become chairman and chief executive. Michael Drozd, who is a former director of Libertas, will become chief operating officer and Michael Shore will also join the board as finance director. Randal MacDonnell and Richard Latham will leave the board.

Beaufort Securities has been appointed broker.

At 4.63p a share, down 0.88p, SNR is valued at £10.1m – including the shares to be issued in the fundraising.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2014_56.pdf

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds