Eastinco Mining & Exploration has now completed a funding round and has secured a total of £ 760,730 that the company intends to use to develop the Rwandan Kuaka mine.
On 2 June 2020, the mining company announced that shareholders had exchanged around 48m equivalent shares of warrants with a gross exercise value of about £720,000.
The group explained in the same statement that with each warrant exercised, investors exercising warrants were given new four-year warrants, with a 3p exercise price.
The “Concert Party” of the management including Charles Bray, Edlin Holdings, Mike Staten, Daniel Hogan, and Stephan Knoef have exercised warrants representing around one-third of the total amount of £ 238,583 contributed.
Following the conversion of 15,905,500 warrants, the Concert Party now holds 88,807,084 shares in the enlarged enterprise, representing 21.2 percent of the enlarged enterprise.
Eastinco said it intends to supplement the new working capital to complete the washing plant at the Kuaka mine site and start mining to generate positive cash flows eventually.
The capital will also reduce outstanding debt, payable to suppliers and company management, while the parent company of the group will refrain from paying any management salaries until the company can produce cash flows, the statement said this morning.
“We are pleased to have closed this funding round and are proud of the support we have seen from our existing holders who were prepared to follow their money and exercise their warrants,” said Mike Staten, Executive Director of Eastinco.
“Rwanda reacted quickly and decisively to lockdown borders and operations in response to COVID-19, we are now seeing the roadmap for lockdown easing and a return to business for the country, this should allow us to progress the completion of the wash plant and larger scale production,” he commented.
Staten added that the Group would update shareholders as it targets in 2020 “significant milestones including the wash plant completion and cash flow from operations.”