North RiverResources Plc said July 18 that its open offer andshare placement to raise US$5.6 million was shunned by investors.

Under the open offer, eligible shareholders were able tosubscribe for shares on the basis of 1.41 shares for every 250 existing sharesheld.

The company's open offer received 258,758 valid acceptancesfrom eligible shareholders, representing 2.98% of the total up to 8,683,254shares available under the offer.

Meanwhile, the company has not raised any funds from theplacement to shareholders.

North River planned to use the proceeds to redeem theconvertible loan notes issued to Greenstone Resources LP.

With the proceeds of the open offer, the company hasredeemed about £61,000 of the loan notes and has converted the remainingbalance into 17,337,471 new shares.

Following the share issue, Greenstone will hold 75.69% ofthe company's issued and consolidated share capital.

The consolidation of 2,199,091,843 existing shares into8,796,367 new ordinary shares of 0.2 pence each was approved at the same-dayannual general meeting of shareholders.

Previously, North River Resources was evaluating optionsto raise funds tocover ongoing costs and for a revised project work program for its lead-zinc project inNamibia.