Aim-listed Arc Minerals will raise about £2-million to help fund exploration and development work on the company’s Kalaba copper/cobalt project, in Zambia, and for general working capital purposes.
On Monday, the company placed more than 44-million units at 4.5p a unit, with each unit comprising one ordinary share of no-par value in the company and one share purchase warrant.
Each warrant, the company said on Monday, will entitle the holder for a period of 36 months to buy one new ordinary share at 6.5p a share.
The placing price represents a premium of 12.5% over the closing mid-price of the company’s ordinary shares on the previous day of 4p.
Arc Minerals executive chairperson Nick von Schirnding on Monday welcomed a European family office and a South Africa-based institution, that would both provide further funding for the company’s Zambian exploration programme, as shareholders.
“Raising funds at a premium to the share price underscores the quality of our Zamsort copper and cobalt asset and I am also pleased that the majority of the board and management participated in the raise,” he commented.
Further drill results will be announced soon.