Galileo Resources PLC (AIM:GLR) has raised £1.7 million in an oversubscribed equity fundraising, priced at 0.8p, with proceeds earmarked to advance its copper projects and support working capital.
Chief executive Colin Bird said the fundraising will support the momentum across its the company’s copper portfolio in Southern Africa and the USA.
The cash will principally be used to advance its projects in Southern Africa and the Ferber Project in the USA, as well as to provide additional working capital and assess new business opportunities.
"The board undertook the fundraising in order to maintain the momentum on its broad copper portfolio based in Southern Africa and the USA," Colin Bird said.
"The fundamentals for copper are becoming stronger as I have predicted for a number of years, driven by increased demand and the absence of new supply. Southern Africa and in particular Zambia is a fertile exploration domain and the company has significant positions in a number of areas including Zambia and Botswana, notwithstanding the potential of the Ferber Project in Nevada."
Bird added: "The industry is showing significant interest in the various projects in our portfolio and we will keep the market advised."
The equity raise will see a total of 212.5 million new shares issued, comprising a placing of 187.5 million shares to raise £1.5 million and a subscription of 25 million shares to raise £200,000. Investors will receive one warrant per new share, exercisable at 1.6p.