(Alliance News) - Golden Metal Resources PLC on Monday said it raised GBP750,000 via a direct subscription with the company.
The mineral exploration company said this was via the issue of 5.0 new shares at a price of 15 pence per share, representing 5.5% of its enlarged share capital.
Shares in Golden Metal Resources were down 0.6% to 14.17p each in London on Monday morning.
The proceeds will be used towards the company's working capital and the acceleration of exploration and project development activities. This includes next stage exploration at Garfield, beginning "key permitting steps" relating to the development of Pilot Mountain in the US state of North Carolina, alongside diamond drilling of "key exploration and resource infill targets".
Golden Metal Resources said subscribers will receive one warrant for every two subscription shares, exercisable at 25p per share and expiring two years after the date of the subscription shares admission for trading on AIM in London.
It expects admission of the new shares for trading on AIM to occur on or around Friday, increasing its total number of shares to 90.9 million.
"I am very pleased to announce this strategic subscription, from a single investor, at a premium to the market price, providing the company with GBP750,000," said Chief Executive Officer Oliver Friesen.
"We intend to deploy this funding into what we consider to be high impact exploration and development initiatives that have the potential to build considerable value for the company and shareholders."
By Greg Rosenvinge, Alliance News senior reporter
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Golden Metal Re (GMET)