LONDON (Alliance News) - Papua Mining PLC said Tuesday that it had raised GBP2.5 million through the conditional placing of 12.5 million units at 20 pence each, consisting of one share and one warrant to subscribe for one share.
The company said this represents a discount of around 7.0% to its closing price Monday of 21.5 pence each.
Shares in Papua are untraded Tuesday at 21.5 pence.
The company intends to raise up to an additional GBP1.5 million by offering 7.5 million units to shareholders.
Papua Mining said that it plans to use the proceeds to continue its drilling programme, primarily at its Tripela target in the Mount Nakru region in Papua New Guinea. It expects to complete up to 4,500 metres of drilling over the next year.
It will also make some exploration expenditures for geochemical mapping and soil sampling at the EL2051 licence area.
Both the placing and offer for subscription are conditional on shareholder approval at the company's annual general meeting on June 26.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @hanassallnews
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