Wishbone Gold PLC (LON:WSBN) told investors it had agreed a new funding deal with institutional investors, arranged by RiverFort Global Capital.
It sees new shares being issued at a price of 0.7p each.
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The arrangement comprises a £800,000 share subscription and a separate equity sharing agreement. Up to US$2mln of investment potentially comes from YA II PN Ltd, arranged by RiverFort, with an initial drawdown of US$400,000. Share warrants were also issued as part of the new arrangement.
“This is the first stage in an overall funding relationship with RiverFort that can lead to the funding of new deals at the project level,” said Richard Poulden, Wishbone chairman.
Graham Sterling, RiverFort chief investment officer, meanwhile, added: “This innovative financing structure offered to Wishbone Gold by RiverFort will allow them to build on their solid progress to date.
“RiverFort believes in the future potential of Wishbone Gold and this funding is an integral part of assisting them in achieving this potential.
“It underlines our faith in Wishbone Gold's Board's ability to execute on their strategy."