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(Alliance News) - SolGold PLC on Friday said it has raised GBP27.1 million from a share placing and retail offer.
Solgold said the fundraise - first announced on Thursday - comprised a placing of 121.4 million shares at a price of 21.5p, including the subscription for a total of 162,790 shares by some directors at the same price.
In the retail offer, investors subscribed for 4.8 million shares, raising an additional GBP1 million. The company added that it is in talks with another potential investor to subscribe for further shares worth USD5 million.
Shares in the gold explorer were trading 10% lower at 21.49p each on Friday afternoon in London, giving it a market capitalisation of GBP413.4 million.
Peel Hunt LLP, Cormark Securities Inc and Cantor Fitzgerald Canada Corporation acted as joint book runners in connecting with the placing.
The new cash will be used to help cover the costs of SolGold's exploration programmes.
"SolGold is pleased with the strong institutional support for the raising. In additional to the completion of the FNV Royalty Financing, the new capital will see SolGold fully funded through to the delivery of the DFS study, whilst at the same time, allow our award winning geologists to rapidly explore the high priority regional exploration targets throughout Ecuador along the spine of the Andean Copper Belt," said Chief Executive Nick Mather.
In May, the company said it signed up to a USD150 million net smelter returns financing agreement with Franco-Nevada Corp for the Alpala copper project. Alongside the net smelter returns financing, SolGold and Franco-Nevada inked a USD15 million secured bridge loan agreement.
Following admission, SolGold's issued share capital will comprise 2.0 billion shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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