(Alliance News) - Rambler Metals & Mining PLC on Tuesday said it has raised USD10.5 million through the placing of 2.55 billion shares at 0.3 pence each.
Shares in the copper and gold producer, explorer, and developer were trading 15% lower at 0.31 pence each on Tuesday morning in London, giving it a market capitalisation of GBP25.4 million.
Rambler Metals said it will use the new cash to add equipment to its mining fleet to support operations upon a return to mill production capacity of 1,350 tonnes per day.
Funds will also go towards initiating engineering and planning to support the re-location of the Duck Pond 2,400 tonne-per-day flotation plant to the mine site, and to advance exploration drilling within the mine.
It added the cash will also be used to support the commencement of the design, construction and commissioning of a crushing & ore sorting plant at the mine site. Additionally, proceeds will be used to upgrade enterprise resource planning and financial systems, upgrade mine site power supply, and initiate studies in support of future strategies.
"The first diamond drill rig is already in operation with the planned in-fill program underway. With proceeds from this financing, we will look to accelerate and extend the exploration spend in 2021, picking up on our exciting prospectivity and resource conversion potential," said Chief Executive Tony Bradbury.
Bradbury subscribed for 16.7 million shares in the placing while Chair Brad Mills and Chief Finacial Officer Eason Cong subscribed for 3.3 million shares each.
Following admission, Rambler Metals will have 10.68 billion shares in issue.
Separately, the company said it has hired Richard Round as a non-executive director, effective immediately.
Round was previously a non-executive director at AIM-listed gold miner Anglo Asian Mining PLC as well as acting CEO of renewable energy company Novera Energy PLC. He is currently chair at private equity backed global inspection company Cyberhawk Holdings Ltd and a director of West Cumbria Mining.
"We are delighted to welcome Richard to the board, both for his AIM company expertise and also for his experience in the mining sector. We are currently in discussions with another independent non-executive director and will look to provide an update on this appointment in due course," Mills said.
By Ife Taiwo; ifetaiwo@alliancenews.com
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