LONDON (Alliance News) - BMR Group PLC on Monday said it raised GBP416,000 through share placing in Jubilee Metals Group PLC.
The mining company holds 63.2 million shares in Jubilee Metals. BMR said it placed 16.7 million of them at a price of 2.50 pence each.
Shares in Jubilee Metals closed 5.7% lower on Monday at 2.50p each.
BMR said it will use proceeds to pay the fee to Blue Square Minerals Ltd of USD500,000 relating to work performed to date.
Following the placing, BMR continues to hold 46.5 million shares in Jubilee Metals.
On Monday last week, Jubilee Metals had agreed to allow BMR Group PLC to issue a portion of its shares in Jubilee to creditors as their Zambian joint venture continued to progress.
In January, BMR took a 4.8% stake in Jubilee. This was as part of a cross-shareholding deal the two firms undertook as they prepared to develop the Kabwe project in Zambia.
Jubilee has lifted the lock-in period associated with these shares in order that BMR can allocate a "sufficient portion" of its holding in Jubilee to creditors. Jubilee said the settlement amount will be around GBP597,015.
