Yongnam seeks to raise $7.9 mil via proposed placement of up to 104 mil new shares

The placement agreement was entered into with W Capital Markets on April 13.

Assuming all the placement shares are placed out, the company’s issued share capital will increase to 627.12 million shares from 522.60 million shares. The new shares will represent 16.7% of the enlarged share capital.

The proposed placement will not result in a transfer of controlling interest.

The net proceeds from the placement are estimated to be $7.5 million, which the company says will be utilised in its entirety for working capital purposes.

Shares in Yongnam closed at 8.3 cents per share on April 12.