Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA), the developer of a large-scale iron ore deposit in the Republic of Congo, has raised a gross £5.7 million after upsizing an oversubscribed investment round.
The company issued 140 million new ordinary shares at 4p each through a placing and subscription, bringing in £5.6 million before expenses, with a further £91,818 coming through a retail offer.
Strong institutional demand prompted Zanaga to increase the capital raising from the £4.1 million originally proposed.
The proceeds will be used to progress the bulk sampling campaign at the Zanaga project, including earthworks and sampling, as well as to cover in-country project overheads and corporate working capital requirements.
Panmure Liberum and Tamesis Partners acted as joint bookrunners on the accelerated bookbuild.
The new shares represent 17.1% of Zanaga's issued share capital prior to the fundraise.
Alongside the placing, four non-executive directors agreed to convert a combined £654,000 in deferred fees into equity at the same 4p issue price, taking a total of 16.43 million new shares between them.