(Alliance News) - Power Metal Resources PLC on Thursday said that it has raised GBP1.3 million in strategic financing through the issue of 130.0 million new shares at 1 pence each.
Shares in the exploration company, which is focused on North America, Africa, and Australia, were up 13% at 1.10 pence each in London on Thursday morning. It has a market cap of GBP23.8 million.
The financing represents a premium of 3.1% to the closing mid-market price of 0.97 pence per share on Wednesday, and was corner stoned by "high net worth investors" from the UK and a "strategic Saudi Arabian investor".
Power Metal said that it intends to use the funds to accelerate both "high impact exploration initiatives" and "corporate activities".
"Corporately, we have been seeking to augment our shareholder register with strategic high net worth and institutional investors, to further strengthen the ownership of the company and achieve a greater proportion of the company's shares in the hands of long term investors," said Chief Executive Officer Sean Wade.
"Importantly, we are also demonstrating the company's ability to secure funds from new sources, giving our shareholders confidence in the ability of the company to robustly finance its ambitious plans."
By Holly Beveridge, Alliance News reporter
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Power Metal (POW)