Tertiary Minerals plc (LON:TYM) has raised £500,000 before expenses via a share placing with the funds raised to be used to progress the evaluation and due diligence of acquisition opportunities, and for work on its fluorspar projects in Sweden, Norway and Nevada in the US.
The AIM listed firm, which is focused on building a strategic position in the fluorspar sector, said its joint broker Beaufort Securities has placed around 41.667mln new ordinary shares at 1.2p each.
In late morning trading, Tertiary shares were changing hands at 1.45p each, down 14.7% 0r 0.25p on last night’s closing price.
In its statement, the company said it is “engaged in discussions and technical due diligence for shortlisted projects capable of generating revenue and profits in the near-term, with discussions being reasonably advanced on one particular project.”
Richard Clemmey, Tertiary’s managing director, commented: "Strong investor interest has enabled us to complete this placing, the proceeds of which will provide funds to progress with the evaluation and due diligence of acquisition opportunities and the ongoing development of our fluorspar projects."
Tertiary’s share price has been on a good run recently since it announced it has signed a memorandum of understanding (MoU)with global commodities group Possehl to enter into an offtake agreement to support the group’s three fluorspar projects.
Under the offtake agreement, Possehl would take at least 70% of commercial grade acid-spar produced at Storuman in Sweden, Lassedalen in Norway, and MB in Nevada.
Possehl, which is part of German-based commodities business Cremer, would provide funds to develop the deposits and for any acquisitions Tertiary may make to bulk them up.