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(Alliance News) - Corcel PLC on Monday said it has raised GBP750,000 through the placing of 75 million shares at GBP0.01 per share.
The placing price represents a 15% discount to Friday's closing price of 1.17 pence. Shares in the natural resource exploration and development company were trading 11% lower at 1.07p each on Monday morning in London, giving it a market capitalisation of GBP2.0 million.
London-based Corcel said the new cash will be used to exercise the option with Sinom Hong Kong Ltd to purchase the remaining AUD3.05 million - or GBP1.7 million - debt in Resource Mining Corp Pty Ltd at a 65% discount, noting the the exercise of the option now entails the payment of AUD640,000 in cash and the issuance of 23.7 million shares to Sinom subsidiary Asia Pacific Ltd.
The company added it will also use some of the proceeds to pursue additional opportunities in the battery metals space.
"We are delighted to have secured the funding to be able to finalise our discounted debt acquisition from the Chinese Sinom Group, who would then become our largest cornerstone investor with approximately 13% of our enlarged share capital and associated lock in and relationship agreement," said Chief Executive Scott Kaintz
Following admission of the new shares, Corcel will have 267.9 million shares in issue.
By Ife Taiwo; ifetaiwo@alliancenews.com
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