North River to raise funds for Namibia lead/zinc project

AIM-listed North River Resources (NRR) will, as part of a two-stage fundraising programme, seek to raise US$4 million (N$508 million) to progress its flagship lead/zinc Namib project in Namibia to a construction decision. The funding would be carried out through an initial placing of US$1.2 million (N$15.2 million) of unsecured 10% convertible loan notes, followed by a US$2.8 million (N$35.6 million) placing and open offer of new ordinary shares to new and certain existing shareholders in September. NRR’s biggest investor and private equity fund, Greenstone Resources, would conditionally subscribe or underwrite the full US$4 million (N$50.8 million), providing the first US$1.2 million (N$15.2 million) immediately after NRR’s general meeting. The fundraising would enable NRR to continue working towards delivering an economically and operationally robust project ahead of construction. The first phase would see the initial front-end engineering and design, early development of the Namib project North decline, sourcing of plant and equipment, the start of an ongoing underground development programme required to establish access for the next phase of resource expansion drilling, and recruitment of technical and operational staff. “While the licence application process has prompted some slippage in the development schedule, we are confident that this will soon be forthcoming. “As demonstrated by Greenstone’s ongoing support for the Namib project, we are not alone in this belief and I am hopeful that our shareholders share this confidence in what is a standout brownfield asset located in a highly attractive mining environment,” NRR CEO James Beams said. JOHANNESBURG MININGWEEKLY