(Alliance News) - Adriatic Metals PLC on Monday announced it intends to conduct a placing to raise USD30.0 million to fund an expanded exploration programme at the Rupice and Rupice Northwest deposits in Bosnia & Herzegovina.
Adriatic Metals is a precious and base metals explorer and developer that owns the Vares silver project in Bosnia & Herzegovina and the Raska zinc deposit in Serbia. Shares in the firm closed down 1.7% at 169.40 pence on Monday in London.
Monday's placing price of GBP1.70 per share - or AUD3.30 per CHESS depositary interest, representing such shares - represents a discount of 5.1% to the company's average price share in the last 10 days on the Australian Securities Exchange.
The total number of placing securities is expected to represent approximately 5.0% of the company's existing share capital.
Adriatic Metals said the proceeds of the placing will fund an expanded and accelerated exploration programme at Rupice and Rupice Northwest, including an additional 40,000 metres of drilling, and associated facilities and equipment. It will also contribute to the general working capital associated with exploration, as well as growth opportunities, general corporate purposes and fees.
"Rupice and Rupice Northwest remain open and there are numerous regional targets such as Droskovac, SP1 and SP2 that have exciting prospects. We believe this exploration programme will deliver impactful results by more aggressively testing priority targets across our emerging high-grade polymetallic district," said Chief Executive Paul Cronin.
By Heather Rydings, Alliance News senior economics reporter
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Adriatic Metal. (ADT1)