Melbourne, Australia — MININGREVIEW.COM — 04 April, 2008 – Tawana Resources – an Australian-based diamond miner with African projects in South Africa and Botswana – has completed a renounceable rights issue raising A$538 650 (R4 million) for its South African operations.
A press release published here last night reveals that the proceeds of the rights issue will be used as additional working capital to fund the company’s projects, which include trial mining at Kareevlei Wes and an assessment of the Tawana Alluvials and St Augustines projects in South Africa.
Tawana announced a one for four renounceable rights issue to shareholders on 20 February 2008. The rights issue, which closed on 28 March 2008, entitled shareholders to subscribe for one new share, at a price of A$0.08 per share, plus one option exercisable at A$0.10 on or before 1 April 2011. The offer resulted in a 29% take up by its shareholders, and the directors have reserved the right to place the 71% shortfall within the next three months in accordance with ASX listing rules.