Aviva Corporation (ASX: AVA) has received a major vote of confidence in the company's operations from The Sentient Group, which seeks to take a cornerstone position in the company.
Subject to shareholder approval, Aviva will conduct a $6 million capital raising comprising of 30 million shares at $0.20.
Of this potential funding injection, Sentient seeks to invest $3.5 million for 17.5 million shares - and therefore a 10.5% stake in Aviva, while being offered a seat on the board.
Lindsay Reed, chief executive officer of Aviva welcomes the cornerstone investment and commented, “We are pleased to have Sentient on board as a development partner in Africa.”
The placement will enable Aviva to follow up highly encouraging results at the Bumbo Base Metals prospect in western Kenya, continue diamond drilling in the Kakamega Gold Camp testing for gold in soil anomalies similar to those which have already yielded strong gold grades, complete a 10,000 metre reverse circulation program at the Kagamega Gold Camp and the Lake District, and finalise the Environmental Impact Assessment for the Mmamantswe Coal and Power Station.
The Sentient Group
Sentient manages over US$2.3 billion in the development of metal, mineral and energy assets across the globe.
The company has experience with ASX listed companies, and already holds investments in Iron Road (ASX: IRD), Geodynamics (ASX: GDY), Marengo Mining (ASX: MGO) and Senex Energy (ASX: SXY).
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18046/aviva-corporation-snares-the-sentient-group-as-cornerstone-investor-in-proposed-a6m-placement-18046.html
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