Unicorn Mineral Resources PLC (LSE:UMR) shares soared, jumping some 53% in early deals, after announcing the appointment of a new executive director, Jason Brewer, and a £573,000 injection of capital.
The investment into the company sees 5.65 million new shares, around 20% of the company, being issued at 6p each whilst £233,456 of convertible loan notes (convertible at 8p per share) are also being issued.
"After a challenging last few months, it is pleasing to end the year with the addition of a new director, Jason, and a strengthened balance sheet,” Unicorn chair Paddy Doherty said in a statement.
“Jason brings a wealth of experience and contacts across the mining industry in general and in Africa in particular, thus providing the company with access to new opportunities to expand and enhance our portfolio of mineral rights and licences.
“We are confident that Jason's knowledge and expertise will greatly contribute to the growth and success of the company.”
Doherty added: “The funds raised today will assist in that programme as well as continuing to finance the development of our Kilmallock project, which we continue to believe should produce strong results."
Doherty, via the vehicle Electro Automation Group, is participating in the raise, taking up £150,000 worth of shares and £61,125 of the notes. He is separately exercising some 900,000 options, at 5p each, raising another £45,000 for the company.
Doherty and fellow Unicorn directors Dave Blaney, Anthony Legge and John O’Connor are also participating in the subscription. Company directors participating (directly) in the subscription represent around 12.7% of the raise.
Following the raise, Doherty will retain a 10.1% holding in the company, whilst Blaney and O’Connor will hold 1.6% and 1.5%, respectively, and Legge will have 0.3%. Incoming director Brewer will meanwhile hold 0.1%, via Gathoni Muchai Investments, a company registered in Kenya and owned and controlled by Brewer.
Brewer is presently chief executive of Marula Mining (ACSE:MARU), non-executive chair of Neo Energy Metals (Neo Energy Metals PLC LSE:NEO) and executive director of Shuka Minerals (Shuka Minerals PLC (AIM:SKA).
Gathoni Muchai Investments, a Nairobi-based investment firm, holds interests in Marula Mining, Neo Energy Metals and Shuka Minerals, along with other investments including mining, property and retail sectors.