In a recent statement, Kibaran Resources Limited’s Chairman, Robert Pett said only existing Kibaran shareholders are offered to apply for up to $15,000 (over 34.1m/-) worth of shares at 10c, representing an 8 percent discount to the five-day volume-weighted average price prior to announcement of the plan.
“The combination of the SPP and the recent share placement will raise up to $2.1m. The proceeds will be used to advance Kibaran’s Epanko graphite project and environmentally-friendly EcoGraf graphite processing business in Asia,” Pett said as the Australian based company targets the Asian graphite market.
The company which is listed at Australian Stock Exchange further noted that only existing shareholders who are based in Australia, New Zealand, Canada, France, Germany, Hong Kong, Singapore, the United Kingdom and Tanzania are eligible.
“All eligible shareholders that participate in the offer must comply with the foreign offer restrictions that are set out in the terms and conditions,” the Kibaran Chairman’s statement added.
It further added that the company had received firm commitments to raise $1.1 million through a placement of 11 million fully paid ordinary shares at an issue price of 10 cents per share to sophisticated, institutional and professional investors (placement).
The placement was completed on 5 March 2019 and Kibaran will provide all eligible shareholders with the ability to participate in capital raising activities, through participation in a share purchase plan.
“Under the plan, eligible shareholders will have the opportunity to purchase up to $15,000 worth of shares at the same price as the placement (10 cents per share), irrespective of the size of their shareholding, without incurring brokerage costs,” the company added which noted that minimum share purchase is pegged at U$ 2,000.
Through the offer under the plan, Kibaran intends to raise up to $1 million on the terms and conditions contained in this letter. The company may elect to accept additional subscriptions or alternatively, close the offer early and/or scale back applications, the statement noted.
“The funds raised under the plan, together with existing cash reserves, will be applied towards the company’s key programs in 2019, being: securing debt finance to enable construction to proceed at the Epanko Graphite Project in Tanzania; and finalising developments to enable construction of the first EcoGraf production facility in Asia,” the company’s statement stressed.