Anglesey Mining (LON:AYM) is to issue 5 mln new shares at 4.5p each to raise a total of £225,000 gross and £213,750 net.
The money raised will be used for general working capital and for the continued development of the Parys Mountain poly-metallic project in North Wales.
Parys is already known to contain 2.1 million tonnes at 6.9% combined base metals in the indicated category and 4.1 million tonnes at 5.0% combined base metals in the inferred category.
An updated scoping study is being prepared by Micon International Limited and by Fairport Engineering Limited.
This study is working over previous estimates of potential capital and operating costs, and will incorporate the use of second-hand plant to minimise expenditure wherever possible.
Recent increases in base metal prices over the last few months together with the lower level of sterling compared to the United States dollar are also expected to be positive for the project economics.
The study is nearing completion and is expected that the report will be available shortly. When the report is completed Anglesey will commence discussions on funding with interested parties.
“We are very pleased to announce this financing which shows the continued support for Anglesey Mining and for its projects from sophisticated institutional investors in the resource industry,” said chief executive Bill Hooley.
“We believe that such support is both positive for the development of the project and as an indicator that investor interest in the base metals sector has returned and that the outlook for the metals that will be produced from Parys Mountain is positive”.