Arc Minerals Ltd (AIM:ARCM, OTC:ACMNF) shares fell 12.8% to 0.41p after £3 million was raised through a placing and subscription at a slight discount to fund exploration in Botswana’s Kalahari copper belt.
Arc said the funds will support an exploration campaign within its licence in the Zone 5 Corridor, including ongoing geophysical work ahead of drilling planned for the second half of the year.
Chief executive Rémy Welschinger said the company is now “fully funded for an exciting exploration campaign this year in the only licence held by a junior inside the Zone 5 corridor of the Kalahari copper belt”, and highlighted strong investor backing for the raise.
The placing saw 750 million new shares issued at a price of 0.4p apiece. The shares had closed at 0.48p the day before, down from 0.68p at the start of the year.
A creditor subscription saw directors and senior managers convert around £1.0 million of outstanding liabilities into equity, as shares were given in lieu of cash payments, strengthening the balance sheet while increasing their equity stakes.
In total, the company will issue just over 1.0 billion new shares and the same number of warrants, on a one-for-one basis. Admission to AIM of the new equity is expected on 30 April.