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Metminco launches bigger rights issue amid strategy shift and board changes

Last updated: 14:50 23 Mar 2018 GMT, First published: 07:45 23 Mar 2018 GMT

Gold Bar on paperwork
Kevin Wilson has been appointed Metminco's executive chairman while William Howe takes up the role of chief operating officer based in Colombia

Metminco Limited (LON:MNC) (ASX:MNC) said it is now seeking to raise A$5.7mln through a revised rights issue as it shifts its strategy and has named a new executive chairman.

The AIM-listed miner said the rights issue would now be on the basis of 9.5-for-2 renounceable entitlement issues at A$0.8 each to raise circa A$5.6mln combined with a placement of 19mln shares, also at A$0.8 each, to raise about A$150,000.

READ: Metminco announces A$5.1mln rights issue to fund exploration in Colombia

The amount is an increase from the A$5.1mln right issue previously announced by the company on 5 March 2018, with Metminco saying the funds raised would be used to expedite a high impact exploration program on high-quality gold properties in Colombia.

The group also said its new strategy would include the start of a drilling programme on the Tesorito prospect and access to the Chuscal prospect, both of which are considered highly prospective gold exploration targets.

It added work would also continue on the permitting of the Miraflores project as the company investigates options for gold production.

The company said that aside from bringing forward the exploration programme, the incoming board and management will look to divest non-core assets in Chile and commence a round of initiatives aimed at reducing overheads.

New executive chairman appointed

The rights announcement and strategy update were also accompanied by board changes. Kevin Wilson has been appointed as executive chairman, while William Howe has resigned from the board to take up the role as chief operating officer based in Colombia.

Wilson is currently also non-executive chairman of Victorian gold explorer Navarre Minerals Limited and non-executive director of Investigator Resources Limited.

The incoming executive chairman commented: "I'm excited by the opportunities that are presented in Metminco. There is a first-class exploration portfolio with outstanding potential at Tesorito and Chuscal and options for a gold development at Miraflores. With the funds currently being raised we will be able to rapidly commence investigating these opportunities.”

In late afternoon trading, Metminco shares in London were steady at 0.98p, recouping earlier falls.

 -- Updates share price --

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