(Alliance News) - Rockfire Resources PLC shares plunged on Monday after it said it has raised GBP375,000 from a subscription of 300.0 million new shares at a big discount.
Rockfire said an unnamed UK institutional investor subscribed to 240.0 million new shares at a price of 0.125 pence per share, whilst a number of directors and a member of senior management subscribed to 60.0 million shares at the same price.
The issue price represents a 52% discount to the Rockfire's closing price of 0.26p on Friday.
Shares in the London-based gold and base metal exploration company were down 47% to 0.14 pence each in London on Monday around midday.
Following the subscription, the board and management will jointly hold 15% of the company's shares.
Rockfire said that the funds will be used to strengthen its balance sheet and help facilitate its planned geophysical survey and initial drilling programme at Molaoi. The company noted that it now has sufficient funds to do both, and they are expected to be completed by the end of June next year.
Molaoi is Rockfire's 100% owned zinc deposit in Greece.
"The company has submitted the relevant applications for the initial drilling programme and is eagerly awaiting the approvals. Our geophysical survey will commence shortly, with subsequent drilling to be directed at the strongest magnetic anomalies expected to be outlined by the geophysics," Chief Executive David Price added.
By Sophie Rose; sophierose@alliancenews.com
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