BlackGold Natural Resources Limited, Metals/Mining

- Issue of 66,703,000 million shares at S$0.123 per share

23.06.2017 - 05:23:59

BlackGold Natural Resources to Raise Further S$8.2 Million through Share Placement

- Gross proceeds of S$8.2 million for the Group's business investment purposes and to further strengthen its working capital position

SINGAPORE, June 23, 2017 - (ACN Newswire) - BlackGold Natural Resources Limited ("BlackGold" or the "Company" and together with its subsidiaries, the "Group") is pleased to announce that the Group has entered into a share placement agreement (the "Placement") pursuant to which the Group intends to issue up to 66,703,000 new ordinary shares in the capital of the Company (the "Placement Shares") at S$0.123 per share to raise gross proceeds of up to S$8.2 million.

The placement price of S$0.123 per Placement Share represents a discount of approximately 9.36% to the volume weighted average price of S$0.1357 for trades done on the Catalist of the Singapore Exchange Securities Trading Limited ("SGX-ST") on 19 June 2017.

The Company intends to use part of the net proceeds for its business investment purposes, including developmental expenses relating to the Riau 1 Project, and also to further strengthen its working capital position.

The Riau 1 Project is a joint cooperation project between BlackGold and China Huadian Engineering Co., Ltd (the "Consortium") for the development of a 2 x 300 MW coal - fired power plant in Riau province, Indonesia (the "Riau 1 Project", or "Project"), as previously announced by the Company on 28 December 2015. The Consortium has participated in a bidding process (the "Bid") to provide electrical power to the Indonesia state-owned company, PT Perusahaan Listrik Negara ("PT PLN"). Further to a Ministerial Regulation by Indonesia's Ministry of Energy and Mineral Resources in February 2017, the manner of award of the Bid can now be made by way of direct appointment. Subject to the successful awarding of the Bid to the Consortium and entry into the relevant power purchase agreement with PT PLN, the Consortium shall construct and commission the Project to enable it to produce and supply electrical power to PT PLN.

Mr Philip Cecil Rickard, Executive Director and Chief Executive Officer of the Group commented: "We are very heartened by the support and strong interests received from the numerous investors who have participated in this placement exercise, which exudes confidence in the Group. The proceeds from this placement augments our readiness for the Project as we await the outcome of the Bid from PT PLN."

SAC Capital Private Limited has been appointed as the placement agent to procure subscribers for the Placement on a best endeavours basis. The Placement is subject to the fulfilment of certain conditions, including approval from the SGX-ST.

The sponsor of the Company, SAC Advisors Private Limited, will be making an application on behalf of the Company to the SGX-ST for the dealing in, listing and quotation of the Placement Shares on Catalist of the SGX-ST.

This press release is to be read in conjunction with the Company's announcement posted on the SGXNET on 23 June 2017.

ABOUT BLACKGOLD (Bloomberg Ticker: BHR:SP)

The Group is an Indonesia-focused coal mining company targeting Indonesia's rapidly growing power plant industry. Through long term, fixed offtake agreements with its principal customers, the Group has a customer portfolio consisting of state-owned and independent power plants and factories.

The Group, through its local subsidiaries, has the rights to three coal concessions in Riau, Indonesia.

Currently, the Group, through its subsidiary PT Samantaka Batubara, has a coal concession for an area of 15,000 hectares, and has over 200 million tonnes of Coal Resources (JORC Code compliant). For more information, please visit www.blackgold-group.com.

Contact:

BlackGold Group

T: +65 6884 4418

E: investor.relations@blackgold-group.com

This press release has been prepared by BlackGold Natural Resources Limited (the "Company") and its contents have been reviewed by the Company's sponsor, SAC Advisors Private Limited (the "Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST"). The Sponsor has not independently verified the contents of this press release.

This press release has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this press release, including the correctness of any of the statements or opinions made, or reports contained in this press release.

The contact person for the Sponsor is Mr. Sebastian Jones, Director, at 1 Robinson Road, #21-02 AIA Tower, Singapore 048542, telephone: +65 6532 3829.

SAC Capital Private Limited is the parent Company of SAC Advisors Private Limited.

Source: BlackGold Natural Resources Limited

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