Metminco Share News (MNC)

LONDON (Alliance News) - Metminco Ltd said Friday that it has decided to increase the size of the previously announced entitlement issue to raise AUD5.7 million, or GBP3.1 million, as it appointed a new board chairman.

The exploration and mining company has appointed Kevin Wilson as executive chairman. Wilson has been a managing director of an Australian energy exploration company since past eight years and is currently non-executive chairman of gold explorer Navarre Minerals Ltd and non-executive director of Investigator Resources Ltd.

The AIM-listed company also said Managing Director William Howe has resigned from the board and will become chief operating officer, located in Colombia. The company has decided to shift its focus to exploration in Colombia and divest non-core assets, leading to a significant reduction in operating costs and financial liabilities.

Metminco expects to raise AUD5.6 million via a revised rights issue and a further AUD150,000, or GBP82128, via placing 19 million shares. The rights issue and placing has been priced at 80 Australian cents, around 43.8 pence.

Proceeds will be used by the company to expedite a high impact exploration program on high quality gold properties in Colombia.

"At its current market capitalisation, there is minimal value attributed to Metminco's gold exploration assets in Colombia, which have obvious potential to produce a world-class discovery. This fund raising will allow us to conduct meaningful drilling on these projects and better demonstrate that potential," Wilson said.

Shares in Metminco were down 11% at 87 pence per share on Friday morning.