LONDON (Alliance News) - Frontier Resources International PLC said Tuesday that it has raised a further GBP148,413 through the issue of 42.4 million shares at a price of 0.35 pence, following its placing to raise GBP205,000 last Friday.
Shares in the company are trading down 11% at 0.399 pence Tuesday morning.
The company said the proceeds from both placings will be used to provide additional working capital as it continues to seek a farm-out of one of more of its projects in the Oman or Namibia.
A total of GBP395,557 was due to Chief Executive Officer Michael Keyes mostly in relation to deferred salary payments, and GBP40,000 was due to Finance Director Barbara Spurrier in relation to accrued but unpaid remuneration. An amount of GBP108,889.25 has been written off, and the the company has settled GBP54,444.63 of this debt by issuing 5.6 million shares to Keyes and Spurrier at the same price as the placing at the end of June.
The remaining balance of GBP272,223 will be paid in the event that the company completes a farm-out of its interests in one or more of its projects, which involves the reimbursement to Frontier Resources of at least GBP435,556 of historic exploration expenditure.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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