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(Alliance News) - Exploration company Cora Gold Ltd on Thursday said it has conditionally raised GBP2.0 million through an oversubscribed placing to fund further drilling at the Sanankoro gold project in Mali.
Each of the 27.9 million placed shares, which were priced at 7.0 pence each, all come with a warrant attached which could allow holders to subscribe to a new ordinary share for 10.00p.
Shares in Cora were 6.8% higher at 8.62 pence each in London on Thursday afternoon.
The fundraising is conditional to the passing of the necessary motion during the company's annual general meeting on September 27, Cora said.
The company added that it has received commitments from gold miner Hummingbird Resources PLC and House of Lords peer Michael Farmer, two large shareholders in the company, to subscribe to 4.7 million and 3.8 million shares respectively.
Upon admission, Hummingbird will own 23.3 million Cora shares, 18% of the company and Farmer will have 17.1 million shares, representing a 13% holding in the company.
Non-executive directors Paul Quirk and Edward Bowie are to subscribe for 357,142 shares and 142,857, respectively, Cora added.
Chief Executive Jonathan Forster said: "The extent of demand and support we have received in this fundraise has been extremely encouraging as it demonstrates a high level of confidence from investors in the potential of Cora, the Sanankoro gold project and the company's wider exploration portfolio. I am delighted also with the continued support and participation of our existing shareholder base.
"Recent results have increased the board's confidence in the potential for Sanankoro to be a standalone gold mine and the funds raised shall enable us to embark on a drill campaign to further advance its development. We shall be looking to mobilise following the end of the wet season, with teams going back into the field in the fourth quarter of 2019. I look forward to informing shareholders with details of our progress in due course."
