(Alliance News) - W Resources PLC on Monday said it has raised GBP927,556 before expenses via a share placing to two Spanish investors.
The mining company said it issued 185.5 million shares at a price of 0.50 pence each. W Resources shares were trading 1.3% higher on the day Monday at 0.38p each, giving it a market capitalisation of GBP22.9 million.
Following the admission, W Resources will have 6.22 billion shares overall.
The company said it believes that it is in its interest to broaden the Spanish investor base and deepen regional support. The investors were undisclosed, but W Resources said they are the Spanish businesses in the Extremadura region, where the company's La Parrilla mine is located.
The funds raised will be used to provide additional working capital for W Resources during the remaining mine commissioning process, it said.
"It is important to balance the final phase of funding on La Parrilla as we head into the most exciting stage of this project, with first ore to the new concentrator plant starting later this month," said Chair Michael Masterman.
"The company will need to add additional funding over the next two months prior to the expected receipt of grant funding and start of commercial production in order to maintain the pace at which the La Parrilla mine is being developed and has received interest from potential debt and Spanish equity providers," added Masterman.
W Resources said another Spanish investor has indicated interest to invest EUR2 million on the same terms as this placement, but the investment is subject to funds approval which it will target to achieve within the next month.