Landore Resources Ltd. (LON:LND) has raised £2mln through a share subscription which it will use to further develop its BAM East gold deposit in Ontario.
The metals explorer issued 74.1mln shares at 2.9p each, a less than 7.5% discount to yesterday’s closing price.
Specifically, the cash influx will go towards financing further drilling and exploration at BAM East, as well as to top up the company’s coffers.
The fundraise was smaller than the £3mln to £4.5mln Landore had initially said it was going to raise when it announced a 301,000oz maiden gold resource for BAM, last month.
After talks with existing and potential shareholders, the company concluded that a smaller raise at the current time would best maximise value for all concerned.
Chief executive Bill Humphries, finance director Richard Prickett and non-exec Helen Green all took part in the subscription as well.
Shares closed at 2.9p on Thursday.