(Alliance News) - Rockfire Resources PLC said Tuesday it has raised funds through the issue of shares following the exercise of warrants.
Back in September, the gold and base metal explorer had raised GBP350,000 through the issue of 116.7 million shares at 0.3 pence each. For every share subscribed for, Rockfire also issued one warrant, exercisable at 1.0 pence each for three years from the date of issue.
On Tuesday, the company announced the issue of 49.3 million shares following the exercise of warrants. Following this exercise, Rockfire said that "nearly 60%" of the warrants issued have been exercised, raising around GBP762,700 before costs to date.
Shares in Rockfire Resources - which is based in London - were up 5.7% at 1.32 pence on Tuesday.
The proceeds will go towards exploration on Rockfire's tenements at the Plateau gold deposit in Queensland, Australia, including geophysics and further drilling.
"Over the next twelve months, Rockfire intends to initially expand the JORC resource estimate and to then initiate preliminary scoping studies into open cut mine extraction at Plateau. The project benefits from being within trucking distance of several operating gold processing plants and studies will include a scope of toll treatment options," said Chief Executive Officer David Price.
"The potential for toll treatment at facilities owned by other companies, may result in significant capital cost savings for Rockfire, should a mining operation eventuate," Price added.
Rockfire Resources now has 629.4 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Rockfire (ROCK)