Revett Mining (RVM.TO, NYSEMKT:RVM) has announced it raised $3.4M by issuing 4.1M units at a price of $0.78/share. Each unit consists of one share and ½ of a share warrant exercisable at $1.00 within two years after the closing date. The funds will be used to continue the development at the Troy Mine which is still going according to plan and should result in restarting the mill in Q4 of this year.
It’s important to see the CEO and Chairman of Revett participating in this placement, as they respectively invested $100,000 and $250,000 back into the company, which could be seen as a vote of confidence. Additionally, Trafigura also purchased 320,000 units to keep its stake in the company at the same level.
This placement doesn’t come as a surprise, as in our previous update on Revett Mining we were already anticipating a $5-8M raise. The current placement of $3.4M is a first step, and we expect the remainder of the redevelopment expenses to be covered by a new debt issue.
Disclosure: The author holds a long position in Revett Mining. Revett is a sponsor of the website. Please see our disclaimer for current positions.