Cash raised by Baobab Resources share issue to be invested in Mozambique

11 July 2012

British company Baobab Resources, which has mining projects in Mozambique, recently issued 50 million shares at a unit price of 8 pence, thus raising 4 million pounds before expenses, the company said in a statement.

In the recently issued statement the company said it had reached a share subscription agreement with Redbird Investments Ltd., an investment vehicle 100 percent owned by African Minerals Exploration & Development SICAR SCA.

Under the terms of the deal, Redbird Investments Ltd. subscribed all 50 million shares and received 25 million warrants for ordinary shares that may be exercised at a price of 12 pence per share by 6 July, 2013, thus raising its total investment to 7 million pounds.

The funds raised, if Redbird Investments Ltd. exercises its warrants will be used to finish the economic pre-feasibility study for Baobab’s project in Mozambique’s Tete province, and to fund the company’s business activities.

African Minerals Exploration & Development SICAR SCA is a fund that was recently set up in Luxembourg and which is investing in mining projects, mostly in Africa. (macauhub)