(Alliance News) - Europa Metals Ltd on Wednesday said it has raised GBP2.0 million before expenses to continue development of the Toral project.
The miner said it issued 15.7 million new shares at a price of 12.75 pence each to existing and new investors. The issue price represents a discount of 23% to the closing price of 16.50p on Tuesday.
On Wednesday, Europa Metals shares were trading 18% lower in London at 13.51 pence each, giving it a market capitalisation of GBP4.5 million. In Johannesburg, the stock was down 18% at ZAR3.22 a share.
The net proceeds from the fundraising will primarily be used towards completion of certain key components of a pre-feasibility study in respect of the company's wholly owned Toral lead-zinc-silver project located in the Castilla y Leon region, northern Spain, it said. In addition, Europa Metals said it will use the proceeds for general working capital requirements.
"The net proceeds will enable us to continue the efficient work that our team has been carrying out at Toral and increase our level of activity at site to move the project forward in respect of the key workstreams outlined," said Executive Chair Myles Campion.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Europa Metals (EUZ)