Shares in Nativo Resources PLC (AIM:NTVO) jumped 36% to 0.61 pence on Thursday after the Peru-focused gold explorer said it had conditionally raised £400,000, easing near-term funding concerns.
The company said it will issue 88.9 million new shares at 0.45 pence each in a placing and subscription arranged by Peterhouse Capital.
Each new share will carry a warrant, giving investors the right to buy another share at the same price within 12 months.
Proceeds will bolster working capital and fund mine planning at the company’s Tesoro Gold Concession in Peru
Investors welcomed the injection, sending the stock sharply higher after a period of weakness that reflected concerns over cash resources.