African Consolidated Resources (LON:AFCR) is to raise £1.90mln (gross) through a subscription offer.
The South Africa focused company has agreed to issue 54.33mln shares at 3.50p each to fund the company’s near term liabilities and progress towards the advancement of its key projects, particularly the Pickstone-Peerless gold project.
The issue has not been underwritten.
African Consolidated Resources said further funding will be necessary in the second quarter of 2013 and that it is exploring all sources of funding.
African Consolidated’s chairman, Roy Tucker, said the subscription and the recent appointment of Craig Hutton as chief executive officer mark a key transformation in the company’s development from an exploration company to a mining company.
The company revealed on Friday that Craig Hutton is taking over as chief executive from Andrew Cranswick, who is stepping down immediately to pursue other business interests.
Hutton has 25 years' experience in the mining sector having worked for Anglo American (LON:AAL), Placer Dome and Harmony Gold (NYSE:HMY).
“Craig's initial focus will be on the advancement of Pickstone-Peerless Gold Project, in which he has already been hugely instrumental, as the project moves towards its production phase targeting 15,000 to 20,000 ounces of gold per annum in the near term," Tucker said.
"As previously reported, Pickstone is an important development for Zimbabwe and it requires full involvement from all stakeholders. Craig, with the support of recently announced management changes in Zimbabwe, will be tasked with ensuring that all stakeholder benefit from this emerging opportunity," he added.