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(Alliance News) - Strategic Minerals PLC, a producing mineral company actively developing projects prospective for battery materials, on Thursday said it has raised GBP1.1 million through share placing and subscription.
The company has issued 244.4 million shares at 0.45 pence per share. The stock closed at 0.48p each on Thursday, down 24%.
The proceeds of the placing will be chiefly used for payment of the remaining consideration of GBP990,000 for the purchase of Redmoor tin and tungsten project located in Cornwall, England.
Strategic Minerals said that it also has issued an option to subscribe for up to 22.2 million new ordinary shares in the company at the same 0.45p price for shareholders.
Chair Alan Broome said: "The company continues to limit equity raisings to only fund projects it believes will value add over time. Today's raise not only achieves this, through securing the balance of the Redmoor acquisition, but the board considers that it will also remove a perceived market overhang associated with the need to fund this liability.
"The board is especially pleased that, after repeated requests from shareholders to be involved with equity raises, it has been able to identify an efficient, cost-effective method of allowing shareholders access to an issue".
By Tapan Panchal; tapanpanchal@alliancenews.com
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