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General mining & base metals

Strategic Minerals raises just over £1mln to fund Leigh Creek

Oversubscribed placing adds strength to Strategic Minerals' balance sheet

Strategic Minerals Plc (LON:SML) has raised just over £1mln before expenses in a placing of shares at 2.25p per share.

The placing was significantly oversubscribed, and was increased from an initial target of £500,000.

WATCH: Strategic Minerals secures key institutional investor through £1.5mln raise

The primary use of the proceeds will be to secure and develop the Leigh Creek copper project which the company plans to acquire and which is currently the subject of due diligence.

The money was raised at more than five times the price of the company's last fundraising on 2 November 2016.

"Once again we are delighted with the market's response to our approach for equity,” said managing director John Peters.

READ: Strategic Minerals signs term sheet to acquire copper mine

“Despite having significant cash balances, the board took the view that it should fund the Leigh Creek Copper project in anticipation of a successful completion to the due diligence currently underway. The board considers that the Leigh Creek Copper project has the potential to become a dominant project amongst our suite of highly prospective projects and takes this vote of confidence from the market as a sign of the company's continued upward trajectory. "

SML shares were down 8.1% to 2.41p in late afternoon trading on Monday.

--Updates for video link and share price--

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