Wilton Resources calls for trading halt pending announcement

GOLD miner Wilton Resources Corporation on Tuesday morning requested a trading halt before the market opened, pending the release of an announcement.

On Sept 18, the Catalist-listed firm said it is proposing to raise S$3.3 million through the placement of 125 million new shares at 2.61 Singapore cents each.

Shares in Wilton Resources last traded at 2.4 Singapore cents on Monday, down 4 per cent, or 0.1 cent.

The placement price of 2.61 cents represents a 10 per cent discount to the counter's 2.9 cents volume-weighted average price on Sept 11, the full market day prior to the signing of agreements.

The company previously noted that it has entered into two separate placement agreements, with 75 million shares to be subscribed by Pheim Asset Management Sdn Bhd, and another 50 million shares to be taken up by Pheim Asset Management (Asia).

The placement shares will represent 4.88 per cent of the company's enlarged share capital after the issue has been completed.

Net proceeds of the placement are estimated at S$3.2 million, after deducting S$50,000 in placement expenses.

Wilton Resources said it plans to use 30.2 billion rupiah (S$2.9 million) or 90 per cent of the placement proceeds to fund the final stages of a flotation and carbon-in-leach mineral processing facility, located at the company's Ciemas gold project in West Java, Indonesia.

The remainder will be used for general working capital, it added.