Strategic Minerals PLC (LON:SML) said it has raised £1.1mln through a placing and subscription of around 244.4mln new shares to help pay the remaining balance of £990,000 for the acquisition of New Age Exploration’s interest in Cornwall Resources, holder of the Redmoor Tin/Tungsten project.
The AIM-listed company said the shares had been issued at a price of 0.45p each, a 28.6% discount to its closing price on Wednesday, adding that it is also allowing existing shareholders to subscribe for up to 22.2mln new shares at the same price through a broker option.
"The company continues to limit equity raisings to only fund projects it believes will value add over time. Today's raise not only achieves this, through securing the balance of the Redmoor acquisition, but the board considers that it will also remove a perceived market overhang associated with the need to fund this liability”, Strategic Minerals chairman Alan Broome said in a statement.
“The board is especially pleased that, after repeated requests from shareholders to be involved with equity raises, it has been able to identify an efficient, cost-effective method of allowing shareholders access to an issue", he added.
Shares in the firm were 26.4% lower at 0.46p in early trading on Thursday.