(Alliance News) - ECR Minerals PLC on Thursday announced the placing of 46.2 million ordinary shares which will be used to support the ongoing activities of the company, particularly its exploration projects in Victoria, Australia.
The shares will be placed at 1.3 pence per share netting gross proceeds of GBP600,000. ECR shares were down 12% at 1.43 pence on Thursday afternoon in London.
The placing, which is oversubscribed, was arranged by SI Capital Ltd which is the London-based gold exploration and development company's broker.
Placees will receive one warrant for each placing share. Each warrant is exercisable to subscribe for a new ordinary share in ECR Minerals PLC at a price of 2.1p for a period of 24 months from the date of admission, the company said, if all the warrants were to be exercised, this would generate proceeds of approximately GBP969,000.
ECR Chief Executive said: "We are pleased to announce this oversubscribed placing at a price substantially higher than the most recent prior placing.
"The funds raised take the company's cash position to approximately GBP1.3 million and, the directors believe this puts ECR in a strategically strong position with regard to commercial discussions over our project interests and for the continuation of exploration."
By Greg Roxburgh; firstname.lastname@example.org
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