Arkle Resources PLC (LON: ARK) said it has undertaken a conditional placing with existing investors to raise £252,000 and plans a share capital reorganisation.
The AIM-listed Irish gold and zinc exploration and development company noted that 50,400,000 new ordinary shares were issued at a placing price of 0.5p each. It’s shares closed trade on Thursday at 0.80p.
The company said the funds raised are expected to provide working capital sufficient for requirements for the remainder of 2020 as well as maintaining ongoing exploration activities.
The group noted that three of its directors had participated in the conditional placing, with James Finn buying 2,500,000 shares and David Cockbill and Patrick Cullen both buying 2,000,000 shares each.
It pointed out that each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.5p per new ordinary share for a period of two years.
The group said that as the placing price is lower than the current nominal value of the company's existing ordinary shares, being €0.01 (1 euro cent) each, it will shortly be convening an extraordinary general meeting, to be held on 22 April 2020, at which it will be proposed that each of the existing ordinary shares be sub-divided into one new ordinary share with a nominal value of €0.0025 and one deferred share with a nominal value of €0.0075.