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(Alliance News) - Panther Metals PLC on Friday said it noted Fulcrum Metals PLC announced the successful pricing of an initial public offering to raise GBP3 million in gross proceeds.
Panther Metals is a Canada-focused mineral exploration company and will hold a 20% stake in the entire issued share capital of Fulcrum upon admission.
Fulcrum is set to issue 17.1 million shares at a placing price of 17.5 pence each, with Panther set to hold 10.0 million shares or a GBP1.7 million total interest.
Panther will also hold 714,286 warrants exercisable at the placing price for a two-year period upon admission and a further 476,190 warrants exercisable at 26.25p over a three-year period from admission.
It is expected for Fulcrum shares to be admitted for trading on AIM in London on Tuesday next week, Panther said.
It added admission will conclude the sale of the Big Bear project north of Lake Superior in Canada, as announced in April last year. Panther retains a 2% net smelter return royalty over the Big Bear project and is in receipt of a GBP200,000 cash payment from Fulcrum.
"The Big Bear project has outstanding potential and well deserves the injection of capital that Fulcrum are planning. With the successful listing the Fulcrum team will now have all the tools at their disposal to deliver value," said Panther Chief Executive Officer Darren Hazelwood.
"Our exploration results and discoveries over the last six months, both from our Obonga project and Manitou Lakes, continue to drive underlying value. Our confidence in the Dotted Lake property has been reinforced by the exploration successes of our project neighbours Palladium One, ratifying its prospectivity and our own mineral system model for the property."
Fulcrum CEO Ryan Mee added: "We are delighted to be announcing our intention to list on AIM and the successful fundraise of GBP3 million. The funds will be used to support our strategy - to focus on discovery and the commercialisation of our projects through targeted exploration programmes with a view to bringing them up the value chain and ultimately to secure potential joint venture partner or acquisition interest.
"I am particularly encouraged by investor appetite for our company, which I believe speaks volumes for the quality of our projects and the expertise of our team."
Shares in Panther were up 4.7% to 4.50 pence each in London on Friday before midday.
By Greg Rosenvinge, Alliance News reporter
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