8 November, 2010, Melbourne:
Range River Gold Ltd (ASX: RNG) (Company) has completed the placement of 250,000,000 ordinary shares at 1.8 cents per share to sophisticated and professional investors raising $4.5 million. Patersons Securities Limited (“Patersons”) has been appointed Lead Manager to the fund raising and has arranged the Placement.
Eligible shareholders will be offered the opportunity to participate in the fund raising on similar terms to the placement through a partially underwritten SPP. The issue price under the SPP is the same as the issue price of the placement, 1.8 cents per share. This represents an 18.8% discount to the five day volume weighted average price (VWAP) for the five trading days prior to and including 2 November 2010, being the last trading day prior to the Company’s request for a trading halt.
The funds raised will be applied to the following activities at Mt Morgans:
?developing additional resources to bring them into the Company’s mining plan; and
?exploration as part of a strategy targeting production of up to 100,000 ounces per annum.
Directors have agreed to subscribe for 8,000,000 shares in the placement. The issue of these shares is subject to shareholder approval at the General Meeting. The remaining placement of 242,000,000 shares is made in accordance with ASX Listing Rule 7.1 and does not require shareholder approval.
Registered holders of shares in the Company at 7.00pm (Melbourne time) on 5 November 2010 may apply for up to $15,000 of ordinary shares under the SPP. Shares under the SPP will be offered at 1.8 cents per share.
Patersonshas agreed to underwrite subscriptions for the first $3 million of the SPP. The issue of any shortfall shares to Patersons will be made in accordance with ASX Listing Rule 7.1 and is therefore subject to shareholders ratifying the placement at the General Meeting.
The General Meeting is planned for 9 December 2010 to ratify the placement, the issue of shares to the Directors under the placement and other matters.
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