LONDON (Alliance News) - Connemara Mining Co PLC Friday said it has raised over GBP400,000 after conducting a very large and also discounted placing and subscription so it can carry out a drilling programme on its gold assets.
Connemara has issued just over 20.0 million new shares in the company at 2.0 pence each to raise GBP402,000 - a 19% discount to Connemara's closing share price on Thursday.
The size of the placing is also considerable as the shares issued represent around 26% of the company's enlarged issued share capital.
Connemara shares were up 5.1% to 2.60 pence per share on Friday morning.
Importantly, each share issued has a warrant attached, allowing investors to purchase another share at the price of 5.0 pence before May 2018.
The funds will be used for a drilling programme on the Donegal gold licences in Northern Ireland and for general working capital purposes.
"Details will be announced in due course but we would hope to commence drilling in the coming weeks," said Chairman John Teeling.
Fellow London-listed firm Metal Tiger PLC, which invests at both a corporate and project level within the mineral resource sector, said it purchased 5.0 million of the shares made available by Connemara, meaning Metal Tiger has invested a total of GBP100,000.
Metal Tiger also has an equal amount of warrants which, if exercised, could double its current stake in Connemara from 6.6%.
Metal Tiger shares were up 1.0% to 4.32 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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