Pangea DiamondFields plc (PDF) – Proposes to raise up to US$15 million

Pangea DiamondFields plc (PDF) – Proposes to raise up to US$15 million

Pangea DiamondFields plc, the diamond producer and exploration company is pleased to announce that it proposes to raise up to US$15 million (before expenses) to provide working capital for the Company by way of an Open Offer.

• The Open Offer will be on the basis on the basis of 15 Offer Shares for every Existing Share and will allow all existing Shareholders the opportunity to participate pro rata in the fundraising.
• Qualifying Shareholders may also subscribe for shares above their basic entitlement under the Open Offer if they so wish under an excess application facility.
• The Company has received irrevocable undertakings from Shareholders to exercise their rights under the Open Offer and make excess applications such that in aggregate, these shareholders are committed to make applications to subscribe for 1,608,579,081 Offer Shares, thus providing a minimum of US$12 million of new funding for the Company through the Open Offer. These commitments are subject to reduction in respect of the excess applications according to the level of valid applications made by other existing Shareholders.
• The Company has also received irrevocable undertakings from shareholders representing in aggregate 58.7% of the Company’s issued share capital to vote in favour of the Resolutions to effect the Open Offer.
• The net proceeds of the Open Offer are expected to be a minimum of US$11.7 million (based upon the currency exchange rate of £1:US$1.492) and will strengthen the Company’s balance sheet, enable the Group to move forward on its current business plan, and provide general working capital for the Group.

Commenting on the Open Offer, CEO Brett Thompson said, “Given the current difficult market conditions, it is extremely gratifying that the Company has received sufficient support from existing shareholders for this open offer, to effectively raise $12 million in new capital. We are optimistic that those shareholders who have not   been approached prior to this announcement, will also see the value and support the Company in potentially raising up to the $15 million targeted in this process. The proceeds of this fundraising exercise will enable the Company to pursue its business plans more fully detailed later in this announcement.”

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