Chromex Mining (AIM: CHX), which is developing chrome operations in
South Africa, said it had raised £1.75 million at 25 pence per share by issuing 7 million new shares to institutional investors. The placing also included one warrant exercisable at 35 pence per share for every two shares allotted. The warrants expire on 30 June 2009.
Two funds moved above the 3% disclosure threshold, including Sirius Resources Fund (3.15%) and Sprott Asset Management (6.31%).
"We are delighted that institutions of the quality of Sprott Asset Management, the Toronto based fund, and Gibraltar based Sirius Resource Fund, should approach us to invest in Chromex. We see this as an endorsement of what we are trying to achieve. We are also pleased to welcome New Star Asset Management, as our third new investor." commented Chromex Chairman, Brian Moritz. "We now have in excess of #2 million of cash resources, which means we are well
placed to acquire further resources should the opportunity arise. These cash resources will also help towards bringing the Company's Mecklenburg deposit into production."
The placing price was completed at a premium to Chromex's share price, whose shares rose 8% to 23.5 pence on the news.