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Wilton Resources to raise S$3.3m via share placements

CATALIST-LISTED Wilton Resources Corporation is proposing to raise S$3.3 million through the placement of 125 million new shares at S$0.0261 apiece, the gold miner said on Wednesday.

It has entered two separate placement agreements with 75 million shares to be subscribed by Pheim Asset Management Sdn Bhd and 50 million by Pheim Asset Management (Asia) Pte Ltd.

The placement price represents a discount of 10 per cent to the counter's volume weighted average price of S$0.029, based on trades don Sept 11, the last full market day prior to the signing of agreements.

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

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

The company 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. This is located at the company’s Ciemas gold project in West Java, Indonesia.

The remaining 3.36 billion rupiah or 10 per cent will be used for general working capital, Wilton Resources added.

In connection with the share placement, Wilton Resources executive chairman and president Wijaya Lawrence has entered into a share lending did with the company where he will agree to lend the shares needed in the placement at no financial benefit.

Placee Pheim Asset Management Sdn Bhd has been in operation for 25 years and is a licensed asset management company in Malaysia. Meanwhile, Pheim Asset Management (Asia) has been operating for 24 years and is licensed in Singapore.

Wilton Resources said its management had reached out to both parties due to their expertise and reputation in the industry. The share placement will also allow the company to tap on the fund management companies’ network and experience.

Trading in Wilton Resources shares, which was halted, will be lifted on Wednesday. The counter last closed at 2.9 Singapore cents on Sept 11, up 0.2 cent or 7.4 per cent.