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Highlights
- $15 million raised in
oversubscribed share placement
- Placement strengthens RTG's share register with a number of
leading Australian and international institutional investors
joining RTG's share register
SUBIACO,
Western
Australia,
Feb. 10, 2015 /CNW/ - RTG Mining
Inc. (TSX: RTG, ASX: RTG) ("RTG" or the "Company") is
pleased to announce that it has resolved to raise approximately
A$15 million in a placement to
Australian and international institutional and sophisticated
investors ("Placement"). The Placement was oversubscribed,
reflecting the quality of the high grade, near term development
opportunity at the Mabilo Project and the strong exploration
potential at both the Mabilo and Bunawan Projects.
The Placement of approximately 22 million shares or subscription
receipts to acquire shares and Chess Depository Instruments
(together "Securities") was completed at a price of
A$0.68 per Security, subject to
standard regulatory and Agent approvals; representing a 1.5%
premium to RTG's last traded price on the ASX and a 5.56% discount
to RTG's 5 day volume weighted average ASX price.
Net proceeds of the Placement will be used:
- to fund permitting and development of the Mabilo Project;
- to fund exploration at the Bunawan Project; and
- for general working capital purposes.
RTG's President & CEO Justine
Magee said, "We are extremely pleased with the strong
support that RTG has received for the Placement from institutions
around the globe, including from our existing institutional
shareholders and from a number of new Australian and international
institutions. Following completion of the Placement, RTG will
be in a strong financial position with cash and liquid assets of
circa A$20.5 million net of fees to
brokers, leaving RTG well funded to progress the Mabilo project,
including the development of the DSO operations, following receipt
of permitting."
Placement Details
The Placement consists of 22.3 million new Securities to be
issued at a price of A$0.68 cents per
Security to raise total funds of circa $15.1
million. The Securities will be issued in two tranches as
below:
- Tranche 1 - Comprising 16.79 million Securities at A$0.68 cents per Security to raise circa
$11.4 million, to be issued
immediately, on or about 18 February
2015, pursuant to ASX Listing Rules 7.1 and section 607 of
the TSX Listing Rules; and
- Tranche 2 - Comprising circa 5.5 million Securities at
A$0.68 cents per Security to raise a
further circa $3.7 million, (a) a
portion of which is to be issued on or about 18 February 2015 to Canadian investors as
subscription receipts to acquire shares (the "Subscription Receipts"), and (b) the remainder of which is
to be issued to Australian and other international investors after
receipt of shareholder approval at a meeting of shareholders
expected to be held on or about 10 April 2015.
That portion of the Placement to be subscribed for by Canadian
investors is expected to be a Placement of units, with each unit
comprised of approximately 0.75 shares and 0.25 Subscription
Receipts. Each Subscription Receipt will be automatically
exercisable and entitle the holder to receive, without payment of
additional consideration, one share of RTG upon the satisfaction of
certain escrow release conditions, and the portion of the gross
proceeds attributable to the Subscription Receipts will be held in
escrow pending satisfaction of the escrow release conditions.
The escrow release conditions, among other things, will include the
receipt of all required shareholder and regulatory approvals
(including approval of Tranche 2 by RTG's shareholders and approval
of the Placement by the Toronto Stock Exchange (the "TSX")
and the Australian Securities Exchange Limited (the
"ASX")). If the escrow release conditions have not
been satisfied on or prior to the release deadline (such deadline
to be determined by the agents and RTG), the Subscription Receipts
will be cancelled and an amount equal to the subscription price
attributable to the Subscription Receipts shall be returned to the
holders of the Subscription Receipts.
A Notice of Meeting to approve Tranche 2 will be sent to
shareholders in due course.
Hartleys Limited and GMP Securities Australia Pty Ltd acted as
Australian Joint Lead Managers and Haywood Securities Inc.
(including Ecoban Securities Corporation) acted as North American
Lead Manager.
ABOUT RTG MINING INC.
RTG Mining Inc. is a mining and exploration company listed on
the main board of the Toronto Stock Exchange and Australian
Securities Exchange Limited. RTG is focused on developing the
high grade copper/gold/magnetite Mabilo Project and advancing
exploration on the highly prospective Bunawan Project, both in
the Philippines, while also
identifying major new projects which will allow the Company to move
quickly and safely to production.
RTG has an experienced management team (previously responsible
for the development of the Masbate Gold Mine in the Philippines through CGA Mining Limited),
and has B2Gold Corp. as one of its major shareholders in the
Company. B2Gold Corp. is a member of both the S&P/TSX Global
Gold and Global Mining Indices.
CAUTIONARY NOTE STATEMENT
Certain statements contained in this announcement constitute
forward looking statements within the meaning of applicable
securities laws including, among others, statements made or implied
relating to the Private Placement and the anticipated closing
thereof, the Company's objectives, strategies to achieve those
objectives, the Company's beliefs, plans, estimates and intentions,
and similar statements concerning anticipated future events,
results, circumstances, performance or expectations that are not
historical facts. Forward looking statements generally can be
identified by words such as "objective", "may", "will", "expect",
"likely", "intend", "estimate", "anticipate", "believe", "should",
"plans" or similar expressions suggesting future outcomes or
events. Such forward looking statements are not guarantees of
future performance and reflect the Company's current beliefs based
on information currently available to management. Such statements
involve estimates and assumptions that are subject to a number of
known and unknown risks, uncertainties and other factors inherent
in the business of the Company and the risk factors discussed in
the Annual Information Form and other materials filed with the
securities regulatory authorities from time to time which may cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Those risks and uncertainties include, but are not
limited to: market conditions and demand for the Offering; the
mining industry (including operational risks; risks in exploration,
and development; the uncertainties involved in the discovery and
delineation of mineral deposits, resources or reserves; and the
uncertainty of mineral resource and mineral reserve estimates); the
risk of gold, copper and other commodity price and foreign exchange
rate fluctuations; the ability of the Company to fund the capital
and operating expenses necessary to achieve the business objectives
of the Company; the uncertainty associated with commercial
negotiations and negotiating with foreign governments; the risks
associated with international business activities; risks related to
operating in Nigeria and
the Philippines; environmental
risk; the dependence on key personnel; and the ability to access
capital markets.
Readers are cautioned not to place undue reliance on these
forward looking statements, which speak only as of the date the
statements were made and readers are advised to consider such
forward looking statements in light of the risks set forth above.
Except as required by applicable securities laws, the Company
assumes no obligation to update or revise any forward looking
statements to reflect new information or the occurrence of future
events or circumstances.
SOURCE RTG Mining Inc.