May 21, 2022

Riedel Resources (ASX:RIE) raises $1.05m for the Kingman project – The Market Herald

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  • Riedel Resources (RIE) receives firm commitments to raise $1.05 million in a placement to support work on its Kingman gold project in Arizona, USA
  • The company will issue 105 million new shares at a price of one cent each, representing a 3.3% discount to the company’s five-day volume-weighted average price.
  • Funds will be used for reverse circulation (RC) drilling and other exploration work on the Kingman Gold Project and general working capital
  • Subject to shareholder approval, certain directors and related parties also intend to participate in the placement
  • Shares traded flat today at one cent apiece

Riedel Resources (RIE) has received firm commitments to raise $1.05 million in a placement to support work on its Kingman gold project in Arizona, USA.

The company will issue 105 million new shares at a price of one cent each.

The issue price represents a 3.3% discount to the company’s five-day volume-weighted average price and no discount to the last traded price prior to its trading half.

The placement was supported by knowledgeable and professional investors, with the new shares ranking pari passu with the existing shares.

The funds will be used for reverse circulation (RC) drilling at the Kingman gold project as well as on-site geological work, sample analysis, preliminary metallurgical investigations and general working capital.

Chairman Michael Bohm said the company is looking to build on its previous drilling results.

“The high-grade assay results obtained from shallow depths at Tintic during the recent RC drilling program are very encouraging,” he said.

“We expect the drill to remobilize to site in the second week of March 2022.

“The drill program will again focus on the historic Tintic mining area as we seek to build on the already impressive drill results from late last year.”

Subject to shareholder approval, certain directors and related parties also intend to participate in the offering.

The shares traded flat today at one cent apiece.