Amaroq Minerals Ltd (TSX-V:AMRQ, AIM:AMRQ), the mining company, is set to issue £30 million worth of new shares as part of fundraising to accelerate operations at its Nalunaq gold project.
Shares will be sold at 74p each in the UK, at ISK127 in Iceland and at CA$1.25 in Canada.
As of Sunday, investors have expressed interest in purchasing stakes which total over £30 million, with one company director committing to buying shares worth £2 million.
Proceeds will be used to speed up mining at the Target Block at the Nalunaq gold project, helping it target production of 300 tonnes per day.
A flotation circuit and dry-stack tailings facility will also be installed using the funds, in a bid to improve recoveries at the gold site.
Throughout 2024, the cash raised will also support the group’s various explorations across its Vagar, Nanoq and Gardaq JV licences.
Eldur Olafsson, chief executive officer of Amaroq, said: “We are investing to increase recoveries at Nalunaq and to accelerate our exploration plans in our strategic mineral acreage across Southern Greenland, which has become one of the last frontiers for Western governments and companies to secure scaled supply of strategic minerals so desperately needed for the energy transition.
“By further de-risking the development of Nalunaq whilst also advancing exploration in both gold and strategic minerals, we believe we can deliver value for shareholders. It is a very exciting time to be the largest acreage holder in Southern Greenland.”
Shares in Amaroq are up over 3% in London on Monday, trading at around 72p.