LONDON (Alliance News) - Alecto Minerals PLC Thursday said it has raised GBP1 million through the issue of 100 million shares and has entered an equity swap agreement.
The Africa focused mining exploration company said the proceeds of the placing will be used to conduct further exploration work through additional drilling with particular focus on increasing the resource at the Company's flagship Kossanto Gold Project in Western Mali.
The company also said it has entered into an equity swap agreement with YA Global Master SPV Ltd, otherwise known as Yorkville, over 50 million shares. Alecto said that in return for a payment by the Company to Yorkville of GBP250,000, twelve monthly settlement payments will be made by Yorkville to Alecto unless there are significant changes to the prevailing market price of both company's ordinary shares.
Alecto said that following the deal, Yorkville will hold 8.49% of Alecto's share capital.
The company also recently announced a USD3 million joint venture with Centamin PLC for two of its key sites in Ethiopia which saw its shares jump in mid September.
Alecto shares were down 13.3% to 1.04 pence, putting it in the top five AIM losers Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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