(Alliance News) - Fulcrum Metals PLC on Tuesday said it raised GBP3.0 million via an initial public offering, as its shares began trading on AIM in London on Tuesday.
The London-based multi-commodity minerals exploration company said the fundraise priced shares at 17.5 pence each, realising a market capitalisation of GBP8.7 million upon admission.
Shares were trading at 18.25 pence before midday on Fulcrum's first day of trading, up 4.3% from the IPO placing price.
Fulcrum said net proceeds of the placing will be used to capitalise on the potential of its portfolio of base, precious and energy metals in Canada by advancing them through the value chain. It noted Canada to be a "jurisdiction which is politically stable and rich in mineral resources".
Its Canadian portfolio comprises of six gold and base metal projects in Ontario totalling 252 square kilometres, covering the Schreiber-Hemlo, Wawa, Winston Lake and Dayohessarah Greenstone belts, and two uranium and gold projects in the Northern Athabasca Basin region of Saskatchewan totalling 136 square kilometres.
On Friday last week, Panther Metals PLC said Fulcrum's admission will conclude the sale of the Big Bear project north of Lake Superior in Canada, as announced in April last year.
Panther retains a 2% net smelter return royalty over the Big Bear project and is in receipt of a GBP200,000 cash payment from Fulcrum.
It also said it was set to hold 10.0 million shares or a GBP1.7 million total interest from Fulcrum's IPO. This is alongside 714,286 warrants exercisable at the placing price for a two-year period upon admission and a further 476,190 warrants exercisable at 26.25p over a three-year period from admission.
By Greg Rosenvinge, Alliance News reporter
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Fulcrum Metals (FMET)
Panther Metals (PALM)