Arkle Resources PLC (AIM:ARK) shares soared 42% after the company announced it had raised £500,000 through a share placing at a 28% premium to the previous closing price - a rare outcome that signals strong investor confidence in its exploration plans.
The fundraising, supported by both new and existing shareholders in the UK and Ireland, gives Arkle the financial firepower to advance its zinc project in Ireland and a lithium and magnesium venture in Botswana.
The placing was oversubscribed, with some investors turned away to avoid excessive dilution, according to Chairman John Teeling.
Directors, including Teeling and David Cockbill, also took part on the same terms as other investors, underlining their commitment to the business.
Funds will help accelerate drilling at Arkle’s Stonepark zinc asset in Ireland, where recent activity and encouraging results from partner Group Eleven have highlighted significant exploration potential.
In Botswana, the mining exploration group is preparing for a detailed drilling programme to tap into lithium-rich brines, using new extraction technology that could offer both environmental and economic benefits.
Teeling said the company is “well placed,” pointing to growing interest in Irish zinc and the strategic importance of lithium and magnesium for future technologies.
The shares rose 0.098p to 0.33p, valuing the business at micro-cap £1.3 million.