Havilah Resources goes to shareholders for capital after blocking $100 million Sanjeev Gupta deal
Just a month after shareholders voted down a $100 million deal with Sanjeev Gupta, Havilah Resources is asking shareholders for a capital injection.
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Havilah Resources has announced a $5.46 million capital raising just weeks after knocking back a $100 million investment from GFG Alliance.
The Adelaide company said shareholders would be able to subscribe for one new share for every four held, at 10c per share.
The money would be used “primarily for value-enhancing work on Havilah’s advanced projects and to explore key high conviction untested copper-gold targets’’ the company told the ASX.
The company also said it had taken out a short standby loan of $500,000 from an unnamed major shareholder to enable it to meet its financial commitments until the capital raising money comes through.
Two major shareholders have also indicated they would take up their full entitlements in the offer, and take up to $3 million of any shortfall.
Havilah’s major shareholders including director Chris Giles and former executive chairman Bob Johnson voted down the GFG Alliance deal last month.
Since then the chief executive took a redundancy and the non-executive directors resigned, to be replaced with new directors aligned with Dr Johnson.
The company said specific projects to be funded with the new money included the completion of the Kalkaroo project pre-feasibility update and feasibility studies of the Grants Basin project and Mutooroo Copper-Cobalt project. Havilah shares were 0.5c lower at 10c.