The Share Price Of BGS Tumbled By 3.03% After The Recent Placement Agreement Update

The Share Price Of BGS Tumbled By 3.03% After The Recent Placement Agreement Update

Birimian Limited (ASX: BGS), a company from metals and mining industry which is into the business of exploring and developing lithium minerals in Mali, provides an update to its recent signed placement agreement for the progress of its 100% owned Goulamina Lithium project. As per BGS’s previous announcement on 14 December 2108, the company was successful in receiving the commitment from the institutional, sophisticated and professional investors for its 35 million fully paid ordinary shares at an issue price of A$0.17 per share. Through this, the company would be able to raise A$5.95 million successfully.

The company further expects to commence a non-renounceable 1:20 entitlements issue at an issue price of $0.17. It means that the company will be issuing additional 13,428,035 new shares in the late January 2019.

Other than the placement of shares, BGS has also signed a letter of intent with Changsha Research Institute of Mining and Metallurgy (“Changsha”) which is a unit of China Minmetals Corporation which covers the opportunities regarding the progress of the project which includes the project finance, the offtake, and EPC matters. It also includes how both parties will be working together

Birimian Limited has also signed a memorandum of understanding with General Lithium Corporation of China (GLC) to begin negotiations for 55% of planned production from its Goulamina Lithium Project.

On 21 December 2018, another update from the company highlights that the balance 9,411,764 Placement Shares will be settling on 2 January 2018. Following this, the company provides a recent update on 28 December 2018, that the offshore investors or the counterparty require extension so that they can provide proof of transmission of A$1,599,999.88 by the end of today’s business day.

The official listing date of BGS is 6 December 2006. The overall performance of BGS since its inception was 11.81%. In five years, the performance of the company was 40.67%. However, the previous one-year performance of the company was -78.57%.

For the half-year FY2018 ending on 30 June 2018, the company made a net loss of $1,805,608. The balance sheet of Birimian Limited looks healthy as it has maintained a net asset base of $23,886,270 which highlights its potential to clear its long-term debts. The debt to equity ratio is 0.09 which indicates that the company uses its resources and assets in case of any financial requirement. However, there is a slight increase in the accumulated loss which suggests that the shareholder’s equity got eroded in the specified period. It may create a negative impact on the shareholders. The total shareholder’s equity for the period is $23,886,270.

By the end of the half-year period ending on 30 June 2018, the net cash and cash equivalent available with the company was $4,908,950.

At present, the market price of the share is A$0.160 (AEST: 3:54 pm, 28 December 2018) which is 0.005 points below the previous trading day’s closing price. The current market price is towards the 52 weeks low price with the stock holding a market capitalization of $42.76 million.


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