Meanwhile, long-standing directors John Teeling and Jim Finn will convert historic salaries totalling £199,500 into company equity at the placing price of 4.15p through the issue of 4,807,228 shares.
And in conjunction with the fundraising, new board member Patrick Cullen becomes full-time chief executive, with what Teeling describes as “full executive authority.”
Teeling himself becomes non-executive chairman, while Michael McNeilly, the chief executive of Metal Tiger is also joining the board. A director from First Equity has also been appointed.
Non-executive directors Vivion Byrne, Danesh Varma and Gavin Berkenheger will step down.
The new money will allow Connemara to accelerate operations across its gold and zinc portfolio in Ireland
“The developments announced today are very significant for the growth of the Company,” said John Teeling.
“It is now time to accelerate our operational story and fully investigate the potential of our strategic gold and zinc interests which the board consider, on the basis of work completed to date, and where relevant the work of our close neighbours, to have excellent potential. We are planning a detailed operational programme at present and a full Strategic Update will be provided to the market shortly which will outline our planned ground operations and specifically how we intend to deploy the additional working capital secured in this financing.”