Anthracite project developer ZYL Limited (ASX:ZYL) has confirmed plans to raise a minimum of A$5.6 million via a placement of up to 280 million shares each at an issue price of A$0.02 per share with major shareholder Prestige Glory giving firm commitment to subscribe the entire placement.
ZYL also plans to offer shareholders a share purchase plan at the same price as the placement to raise up to a maximum of A$1.5 million.
The placement is part is ZYL's recapitalisation plans outlined earlier last month that included the extension of an existing bridging facility and issuance of 60 convertible notes with a face value of $100,000 each in addition to the placement.
Following completion of the placement, the rights issue and the convertible notes, the company will have raised approximately $13million.
Prestige Glory has given firm commitment to subscribe the entire amount of the placement, while ZYL plans to approach other new and existing sophisticated and professional investors to participate in the placement.
To the extent, other investors participate in the placement, Prestige Glory's obligation to subscribe to the shares will be reduced.
But Prestige Glory will retain the right to top up its subscription for shares to 280,000,000 shares to the extent that other investors take up the placement.
The record date for the share purchase plan was 16 May 2013.
Commercial Director Phillipe Lalieu commented, "The placement completes the next step in finalising the Settlement Agreement announced in April and re-affirms the commitment of Prestige Glory in the development of ZYL."
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