Cobar Consolidated Resources shares spike on Magna share placement

Cobar Consolidated Resources (ASX: CCU) has agreed to place 13M shares at 25 cents per share to raise $3.25M, to Magna Resources Corporation Pte Ltd (Magna).

Magna, a private company owned by Prajogo Pangestu, is the majority shareholder of PT Barito Pacific Tbk.

Barito Pacific is a diversified resource based company with interests in mining, forestry, petrochemicals and property, which is listed on the Indonesian Stock Exchange.

Commenting on the share placement, Cobar’s Managing Director Ian Lawrence said, “we’re pleased to welcome Magna to the register and look forward to a rewarding association."

"Magna joins us at an exciting time. We’re about to complete a reserve statement and other work required to re-assess the Wonawinta silver project economics, which we are optimistic will lead to a decision to move to the next phase of work."

"The proceeds from the placement to Magna will help with our short term funding needs,” he added.

The placement is within the company’s capacity to issue shares under ASX listing rule 7.1, without shareholder approval.

Magna will hold 9.9% of Cobar’s issued capital when the placement is completed.

Cobar Consolidated Resources shares rose 20% to 24 cents in trading this morning.

http://www.proactiveinvestors.com.au/companies/news/6368/cobar-consolidated-resources-shares-spike-on-magna-share-placement-6368.html