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Golden Rim Resources (ASX:GMR) receives commitments for $6m placement
Source: Golden Rim Resources
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  • Golden Rim Resources (GMR) receives commitments to undertake a $6 million placement
  • A total of one billion fully paid ordinary shares will be issued to institutional, sophisticated and professional investors at 0.6 cents
  • Participants will also receive one attaching option for every two new shares subscribed for, exercisable at 12 cents with expiry 18 months from issue
  • Once received, Golden Rim will use the money to advance exploration at its flagship Kada Gold Project in Western Australia
  • Golden Rim ended the day in the grey with shares trading at 0.7 cents

Golden Rim Resources (GMR) has received commitments to undertake a $6 million placement.

The company entered a trading halt on September 13 but did not disclose how much it intended to raise or how it would use the funds.

A total of one billion fully paid ordinary shares will be issued to institutional, sophisticated and professional investors at 0.6 cents.

Participants will also receive one attaching option for every two new shares subscribed for, exercisable at 12 cents with expiry 18 months from issue.

The placement will be undertaken in two phases with phase one to issue 625 million shares on or around September 22.

Phase two, which is subject to shareholder approval, will issue the remaining 375 million shares.

Shareholder approval will be sought after at Golden Rim's meeting which is expected to be held on November 5.

Once received, Golden Rim will use the money to advance exploration at its flagship Kada Gold Project in Western Australia.

Managing Director Craig Mackay commented on the placement.

"We are excited by the oxide gold results to date from Kada and now have the funding in place to proceed with our strategy of advancing this core asset and delivering value for shareholders," Mr Mackay said.

"The wet season in West Africa is finishing and we look forward to commencing the second round of resource definition drilling at Kada shortly. We are on track to deliver a maiden resource for Kada towards the end of Q4 2021."

Golden Rim ended the day in the grey with shares trading at 0.7 cents.

GMR by the numbers
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