Kendrick Resources PLC (LSE:KEN) shares strengthened in Tuesday's early trade, rising 11.3% to 7.79p, after the small-cap firm raised £1.76 million to advance its Bonya Rare Earth project in Namibia, where drilling is underway as the company targets a maiden JORC resource by the end of the third quarter.
The mineral exploration and development company issued 25.2 million new ordinary shares at 7p each, raising £1.76 million before expenses. The fundraising included a £400,000 placing through Shard Capital Partners and £1.36 million from company-arranged share subscriptions by directors, a US-managed fund, a US family office and existing shareholders.
Executive chairman Colin Bird and director Martyn Churchouse each subscribed £20,000 for 285,714 shares. Kendrick said the 7p fundraising price was equal to the closing mid-market price and a 3.7% premium to the closing bid price on 22 May.
The proceeds will also be used to advance the strategic development and operational delivery plan announced earlier this month and for working capital.