Aguia successfully completes shortfall placement for previously announced rights issue & names new executive management
Aguia Resources Limited (ASX: AGR) (“Aguia” or “Company”) is pleased to announce that it has received application forms for 21,147,503 new ordinary shares at $0.04 per share to raise a total of $845,900 (the “Shortfall Placement”) with settlement expected to occur in the next week. The Shortfall Placement has been well supported by a number of sophisticated and professional investors.
The funds from the Shortfall Placement will be used to advance the Company’s core asset at Três Estradas South as it evolves from the exploration to development and support the ongoing resource, metallurgical and engineering work.
The Company confirms that under ASX Listing Rule 7.1, approval for the issue by Aguia shareholders is not required.
The Company is also pleased to announce the appointment of Justin Reid as new Executive Chairman and Managing Director, replacing David Gower who will move to Independent Director and Prakash Hariharan who has resigned as a Director but will remain as strategic advisor for the Company. In addition Catherine Stretch is being appointed as Chief Commercial Officer, focusing on the administration and strategic positioning of the Company as it migrates towards production and evolves into a major Agribusiness focused in Brazil.
Commenting on his appointment Mr. Reid states, “Prakash, a long term colleague of mine, took control of Aguia during a volatile and transitional time, where both the head winds of a difficult market and the retreat of global agriculture investment impacted the ability of the Company to advance. In his care, Aguia has significantly advanced its asset portfolio culminating with the near-term delivery of an advanced resource statement, metallurgical study and a Preliminary Economic Assessment for the Três Estradas deposit in Brazil. In addition he has focused the technical team mandating recognition of additional value creation from its asset base with focus on the high-grade Joca Tavares and the new potential world-class discovery at Cerro Preto. Prakash has left Aguia in a well capitalized and stable position from which to continue its growth. On behalf of the Board of Directors we would like to thank Prakash for all of his hard work and for his continued support via our Advisory Board. Catherine and I look forward to the next phase of development at Aguia, that of continued asset de-risking and development.”
Prakash Hariharan notes “I am delighted we were able to bring on Sulliden Mining Capital as a strategic investor and happy to see Justin take over in the build out of Aguia’s next phase. I believe we have a world class deposit and one that is highly strategic for Brazil which relies heavily on imports to for essential nutrients for its agricultural sector. The team from Sulliden combined with our strong Brazilian technical team will add tremendous value to the exploration, growth and build out of the assets”.
Material Terms of Executive Chairman / Managing Director’s Contract
The material terms of the employment contract for Justin Reid are as follows:
- Position: Managing Director / Chairman
- Salary: A$175,200 per annum
- Options: Subject to shareholder approval being obtained, the grant of 1,350,000 3-year options priced at 40% above share price on date of approval
- Bonus: Entitlement to annual cash bonus at discretion of Board
- Term: No end date
- Termination: 3 months notice by employee and 6 months notice by Company.
Justin Reid’s background
Justin Reid currently holds the position of President and Chief Executive officer of Sulliden Mining Capital, Aguia’s largest shareholder. Over his 20 year career he has raised in excess of C$4BB in mining investment, driven multiple acquisitions, relaunched and structured various mining ventures and led the development, financing and eventual sale of Sulliden Gold to Rio Alto Mining. Mr. Reid has a Bachelor of Science from the University of Regina, a Masters of Science from the University of Toronto and holds a Masters of Business Administration from the Kellogg School of Management at Northwestern University in Evanston, Illinois USA.
Catherine Stretch’s background
Catherine Stretch currently serves as the CEO of DT Plantations Inc., a company developing agriculture plantations in the Philippines and has a detailed understanding and expertise of global agriculture markets. Previously, Catherine was a partner and the Chief Operating Officer of a Canadian investment firm which had $1 billion in assets under management and focused on managing resource oriented investment funds. In this role Catherine helped research, develop and structure early stage investments and investment vehicles in Canada and overseas working with legal teams, securities regulators and local partners as well as overseeing day-to-day operations and financial reporting requirements of the company. Catherine has a BA in Economics from the University of Western Ontario and an MBA in International Business from the Schulich School of Business at York University.
For enquiries please contact:
+61 2 9929 9690