LONDON (Alliance News) - Metminco Ltd said Wednesday it has raised AUD540,000, approximately GBP297,066, from its share placing, and is planning to raise further AUD2.5 million via rights issue.
The AUD540,000 was raised via the issue of 135 million shares at AUD0.004 per share.
Participants in the placement are entitled to receive one listed option for every three placement shares. These free-attaching listed options have an exercise price of AUD0.011 per Metminco share and are exercisable on or before June 2020.
Further to the placement, the miner is also planning a AUD2.5 million rights issue of three Metminco shares for every five existing Metminco shares, at an issue price of AUD0.004 per share. The rights issue shares also have an attaching option exercisable at AUD0.011 per share for every three share subscriptions.
The mining company will use the proceeds to fund its Quinchia gold project in Colombia and its Jejevo nickel project in the Solomon Islands, as well as for working capital.
Metminco said it has commenced due diligence on its Sunshine Metals Ltd acquisition. Sunshine holds 80% of the Jejevo project, as well as an 80% interest in a bauxite prospect on the Solomon Islands.
"Metminco notes that the Minerals Board of the Solomon Islands government's Ministry for Mines has recently approved a mning licence for a nickel laterite project also located on Santa Isabel Island. This reinforces the company's view that with an appropriate resource, development plan and engagement with all stakeholders, a development of Jejevo is achievable," Metminco said.
Shares in Metminco were suspended on Wednesday.
