http://www.proactiveinvestors.co.uk/com ... ews/39471/
Red Emperor Resources (LON:RMP, ASX:RMP) said this morning that it is raising £6.9 million to fund its exploration programmes in Puntland and Georgia.
It is doing so via a two-tranche placing of shares at 18 pence each, a modest discount to Friday’s closing price on AIM.
Almost 16.2 million shares are being issued in the first tranche, with a further 22.3 million expected to be placed in the second.
The company can place up to an additional 7 million new shares as “over-subscriptions” to Australian shareholders to the second tranche.
The placing is being organised by Fox-Davies Capital and Old Park Lane in the UK and Max Capital Pty in Australia.
In an update on progress, Red Emperor said that its Shabeel-1 well in Puntland, an autonomous territory of federal Somalia, is now at 1,230 metres.
In the former soviet state of Georgia, meanwhile, the Namakhvani well is expected to spud in mid April.
"We believe that Red Emperor is now fully funded to participate in a second exploration well in Puntland," said Old Park Lane Capital analyst Barney Gray, who rates the stock a 'buy'.
"As a pure exploration play, the company carries a very exciting risk/reward profile and drilling success in Puntland has the potential to generate huge upside to the current share price."
The broker targets a price of 85 pence a share.
As at 2.30 pm, Red Emperor shares were up 3.66 per cent, to change hands at 21.25 pence.
im loving how things are goin on inshalla khayr 