ACG Metals Ltd (LSE:ACG, OTC:ACGAF) said its share placing was significantly oversubscribed, raising US$15 million (£11.4 million) and drawing strong backing from both existing and new institutional investors.
The London-listed copper producer placed 1.06 million new shares at £10.80 each, with demand exceeding the offer size. The company said the success of the placing demonstrated growing investor confidence in its strategy and future growth plans.
Chairman and chief executive Artem Volynets said: “We’re pleased with the strong demand shown in yesterday’s placing, which was significantly oversubscribed.
"We appreciate the backing of our long-standing investors and are glad to welcome those joining us for the first time. The outcome is a clear endorsement of our team and strategy, which we will execute as planned.”
He added that the company’s Enriched Ore Treatment Project “gives us a clear path to bringing forward additional production, improving cash generation and unlocking value that wasn’t recognised in the original mine plan”.
Net proceeds from the fundraising will be used to help finance Phase 1 capital expenditure and, together with internal cash, will fully fund the $39 million Enriched Ore Treatment Project.
The placing was managed by Stifel Nicolaus Europe, Canaccord Genuity and Berenberg as joint bookrunners. Admission of the new shares to trading on the London Stock Exchange’s main market is expected to take effect at 8 a.m. on 14 November.
A separate retail offer has been launched to bring in a further $500,000.