Great Southern Copper PLC (LSE:GSCU) said it has successfully raised £1,002,000 to support its ongoing exploration programs in Chile.
The funding was secured through a placing and subscription, as well as a convertible loan facility, and was oversubscribed, attracting support from existing, institutional and new investors.
The company's directors also participated in the placing, further demonstrating their confidence in Great Southern Copper's copper-gold exploration projects in Chile.
The funds raised will enable the company to continue its exploration activities in the region, with a particular focus on the Teresita and Victoria prospects in Especularita, where high-grade copper has been identified in outcrops and artisanal mine dumps.
"We are very pleased with the strong support shown for this fundraising from new and existing shareholders, which reflects the confidence in our copper-gold exploration projects in Chile," said Sam Garrett, chief executive officer of Great Southern Copper in a statement.
He added: "This is very exciting because none of these prospects have been drilled before despite strong evidence of high-grade Cu and Au at the surface."
The company said it intends to provide regular updates on its exploration progress and advancements in its copper-gold projects in Chile.
The funding consists of £501,000 raised through a conditional placing and subscription, resulting in the issuance of 41,749,998 new ordinary shares, and an additional £501,000 raised through a convertible loan facility with Foreign Dimensions Pty Ltd (FDPL), the company's main shareholder. The convertible loan will automatically convert into ordinary shares once the relevant shareholder authorities are in place and a prospectus has been published.
Following the conversion of the convertible loan, FDPL and other members of the Bourke family, who are deemed to be acting in concert with FDPL, will hold more than 50% of the voting rights in Great Southern Copper. As a result, they will have the ability to increase their aggregate interests in shares without the obligation to make an offer under Rule 9 of the Takeover Code.