Richmond Mining: Board changes and proposed raising to support Buena Vista Iron development

Richmond Mining (ASX: RHM) is preparing for the next stage in the company’s growth with changes to the company’s board along with proposals for a capital raising and a name change.

The company is on track to begin commissioning at its Buena Vista Iron Project in the U.S. state of Nevada before the end of 2012, and has put new leadership in place to spearhead the project’s development.

Indicated JORC Resources at Buena Vista recently increased 36% to 88.7 million tonnes at 20.4% total iron at the west deposit, incorporating a total 10% iron wire framing cut-off grade.

Mick McMullen has agreed to join Richmond as non-executive chairman, while Tom Duckworth and Andrew Brice have been appointed non-executive directors.

All three of the new directors have extensive experience with large projects, and bring important finance and development skills to the board.

McMullen has a background in project development along with debt and equity financing. His current roles include advisory board member of Champion Minerals (TSX: CHM) and chairman of Lachlan Star (ASX: LSA, TSX: LSA).

In addition, McMullen co-founded Northern Iron (ASX: NFE), overseeing the financing and development of the company’s Sydvaranger magnetite project in Norway and the subsequent growth of the company to a market capitalisation of more than $500 million at the time of his departure.

Duckworth is a consultant metallurgist who has worked on Richmond’s Buena Vista Project over the past 18 months as part of the technical consulting team.

He has spent 50 years involved in test work, process design and production for a range of mining projects, including magnetite operations at Sydvaranger, gold operations at Boddington, the Mt Keith nickel project and base metals projects at Cannington, Tritton and Hellyer.

Brice is a mechanical engineer who has worked on project development and operations for companies such as Alcoa (NYSE: AA), Iluka Resources (ASX: ILU), BHP Billiton (ASX: BHP) and Rio Tinto (ASX: RIO).

His experience ranges from feasibility studies through to project commissioning with a detailed understanding of alumina and iron ore operations.

The three new recruits join existing directors Max Nind and Lou Jelenich to form the board that will take Buena Vista into development.

Non-executive chairman Howard Dawson and non-executive directors Jim Malone and Greg Barns will retire from the board.

Capital raising
In addition to the board changes, Richmond has proposed to raise $3 million through a placement to clients of MRI Advisory AG.

The placement would comprise 12 million shares at an issue price of $0.25, a 16% premium to the company’s 30 day volume weighted average price.

New non-executive chairman McMullen will subscribe for a minimum of $1 million into the placement.

A further 12 million options, exercisable at $0.30 and expiring on March 31, 2015, will be issued to MRI or its nominees for ongoing advisory services.

Name change
In other company news, Richmond has proposed a change in its name to Nevada Iron, to better reflect the company’s operational focus.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/25282/richmond-mining-board-changes-and-proposed-raising-to-support-buena-vista-iron-development-25282.html