Mkango Resources Ltd (CVE:MKA) is set to list on London’s Alternative Investment Market, commonly referred to as ‘Aim’, in the middle of this month.
The directors expect the shares to list on London’s junior market on 15 June, 2016, or shortly thereafter. Mkango will retain its listing on the TSX Venture Exchange.
The company will be taking the opportunity to raise fresh capital when it makes its debut on Aim, with institutional investors having signed up to buy more than £1mln (around C$1.89mln) of Mkango shares.
In conjunction with the placing of shares and the admission to Aim, the company intends to undertake a share capital consolidation on the basis of one new share for every three old shares, which will have the effect of reducing the number of shares in issue by two-thirds to 40.42mln.
Based on the consolidated share capital, Mkango will be placing the new shares at 3.3 pence (p) per unit, with each unit comprising one common share of Mkango and one purchase warrant – a common enough practice in Canadian circles but a tad unconventional on the UK market.
The warrants can be exercised at a price 6.6p.
UK shares are traditionally priced in pence, rather than pounds and fractions thereof.
The expected proceeds of the placing will provide the corporation with sufficient working capital for a minimum period of one and a half years from completion of the placing, Mkango said.