Middle Island has closed a conditional placement of A$5M needed to acquire an 80% interest in the Samira Hill Gold Mine in the Republic of Niger.The conditional placement to raise A$5 million at A$0.10 per share has closed fully subscribed., which satisfies one of the conditions precedent to closing of the proposed acquisition, including an 80% interest in Société des Mines du Liptako S.A., the owner and operator of the Samira Hill Gold Mine in the Republic of Niger. The placement was made to professional and sophisticated investors with funds to be held in trust subject to certain conditions being met prior to allotment, according to Middle Island Resources, the ASX-listed company. Middle Island Resources has entered into a non-binding heads of agreement for the purchase of the entire issued capital of African Geomin Mining Development Corporation, a wholly-owned indirect subsidiary of SEMAFO, listed on the TSX.
Middle Island Resources is offering all MDI shareholders a share purchase plan (SPP) at the same issue price as the placement (A$0.10 per share), capped at A$3M. Under the SPP, each eligible shareholder of MDI will be entitled to acquire up to A$15,000 of new shares in Middle Island Resources. Both the placement and SPP shares will rank equally in all respects with existing MDI ordinary shares.Funds raised under both the placement and the SPP will be used by Middle Island Resources to supplement working capital to operate the mine. The cash component of the consideration for the proposed acquisition will be paid from Middle Island Resources’ existing cash reserves.