(Alliance News) - Arc Minerals Ltd said Tuesday its pretax loss widened in the first half as it received no revenue from its subsidiary in Zambia Zamsort Ltd.
Arc Minerals shares were up 3.9% in London at 3.22 pence each on Tuesday.
For the six months ended September 30, the metals explorer's pretax loss widened to GBP16.1 million from GBP1.2 million a year prior.
The net loss of the group included the net loss of Zamsort of GBP342,000, which is involved in the exploration for minerals in the Republic of Zambia.
The company said it did not receive any revenue from Zamsort during six months to September 30.
Earlier on Tuesday, Arc Minerals said it had agreed with a consortium of French and Swedish investors to raise USD1.7 million through the issue of unsecured convertible loan notes.
No funds have been drawn down from the notes to date; however the metals explorer said the money would go towards working capital purposes.
The loan notes are interest free and are convertible into Arc Minerals shares at 4.5 pence each, reflecting a 66% premium to the company's closing price on Friday last week at 2.7p.
The repayment date for the notes is 12 months following the drawdown date, following which Arc will repay 120% of the aggregate value of the principal amount.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Arc Minerals (ARCM)