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(Alliance News) - Power Metal Resources PLC shares rose on Monday after it announced it has secured funding for its drilling programme in Botswana.
The metals exploration company raised gross proceeds of GBP800,000 via a placing of 57.1 million shares at 1.4 pence each, matching Friday's closing market price. It also raised a further GBP280,000 through the issue of 20.0 million shares at the same price to a single investor. The investor is a client of its broker First Equity Ltd, the company said.
Shares in Power Metal were up 12% to 1.60p on Monday during midday trade in London.
It will put the funds towards the development of the geophysics and upcoming drill programme at the Molopo Farms Complex project in Botswana. Drilling is scheduled to begin in mid-September, with the firm targeting a "large-scale nickel sulphide discovery".
"Considering the scale of the conductors identified, especially that at priority target area T1-6, and the number of conductors being targeted it was clear that we needed to be prepared for the possibility of an expanded campaign at the project and we have undertaken the financing to position for that expansion," explained Chief Executive Officer Paul Johnson.
Funds could also be used to expand "other priority exploration activities".
By Elizabeth Winter; elizabethwinter@alliancenews.com
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