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(Alliance News) - Europa Metals Ltd on Monday said it has raised GBP1.0 million before expenses through subscription and a share placing.
The lead-zinc explorer said it issued 4.00 billion shares at a price of 0.025 pence each. The placing and subscription shares represent 24% of the company's enlarged issued share capital.
The share placing price represents a discount of 29% to Europa Metals' closing mid-market price of 0.035p per share on Friday.
Europa Metals explained that the fundraising comprised a placing of 3.40 billion new shares arranged by Turner Pope Investments Ltd, the company's joint broker, with new and existing institutional and private investors, and a subscription by Brandon Hill Capital Ltd for 600.0 million new shares.
In addition, one warrant exercisable for a period of two years from admission at a subscription price of 0.0375p per share will be issued to all participants in the fundraising for every two shares subscribed, Europa Metals said.
The net proceeds from the fundraising will be used towards progressing the workstreams required for a pre-feasibility study at Toral lead-zinc-silver project located in the Castilla y Leon region, northern Spain, the company said.
"During 2019 to date we have significantly progressed Toral. We have identified a number of credible exploration avenues outside of the current confines of the scoping study and commenced the ground work for a mine development licence application in 2020," said Executive Director Laurence Read.
He added: "Today's fundraising has been successfully concluded at well above our last fundraising price and, whilst at a discount to the prevailing market share price, ensures that Europa Metals can progress the fundamental elements of a pre-feasibility study for the Toral project with a view to demonstrating the asset's potential strengths in terms of grade, resource, economics, with a well-defined development pathway."
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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