(Alliance News) - Miner Pembridge Resources PLC on Monday said that it has raised GBP633,000 through a share subscription to ensure a "stable and health financial position".
The company has issued 19.2 million new ordinary shares at 3.3 pence each. The subscription price was 20% above Friday's closing price. Shares on Monday ended 16% higher in London at 3.20p each.
The company, which owns stake in the operator of the Minto copper-gold-silver mine in Yukon, Canada, said Chief Executive & Chair Gati Al-Jebouri subscribed for 11.8 million shares, taking his total holding in the company to 28.4%. Non-Executive Director Frank McAllister bought 1.2 million shares, increasing his stake to 5.7%.
Pembridge also said it has amended its GBP3.7 million convertible loan agreement with Gati Al-Jebouri, extending the maturity date to December 31, 2022, from October 25, 2021. The interest rate on the loan has been increased to 10% from 8% from the start of May.
Al-Jebouri said: "This additional equity capital will strengthen the company and reduce the requirement to draw down further on the convertible loan. We believe that we can rebuild shareholder value from these depressed levels, especially given we have now strengthened the financial condition of the company."
By Tapan Panchal; tapanpanchal@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.