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Romarco Minerals cancels share offering after shareholders voice concerns

TORONTO – Romarco Minerals Inc. (TSX:R) said Wednesday that it was cancelling plans for a share offering after several key stockholders said they would prefer the company explore other ways of raising cash.

The company had announced plans Tuesday for an overnight-marketed public offering of shares.

The size and price of the offering had not been determined, but Romarco said it had planned to use the proceeds to help build its Haile gold mine.

“While our key shareholders have indicated their continued support for the company, several expressed their preference that the company explore alternative financing structures versus the proposed prospectus offering,” Romarco president and chief executive Diane Garrett said in a statement Wednesday.

The Haile mine in South Carolina is the company’s flagship project. It has completed a feasibility study and is continuing drilling work and permitting for the mine.

Romarco noted that while the proposed offering would have provided it additional flexibility, the company has the ability to continue the permitting phase with existing cash on hand.

Shares in the company last traded for 94 cents on the Toronto Stock Exchange.