The AIM debut of the independent gold company with a portfolio of gold licences in Greenland followed a fundraise which comprised a placing and direct subscriptions for an aggregate of 94,444,445 new common shares at a price of 45 pence per share or 77 Canadian cents per share, raising gross proceeds of £42.5 million (C$72.7 million), with the new shares represent 53.3% of the company's enlarged share capital.
The net proceeds of the fundraising will be used to commence development at AEX Gold’s previously producing Nalunaq Property, in Southern Greenland, as well as funding, subject to the financing below, exploration activities across its wider licence portfolio covering 3,356 square kilometres on the two known gold belts in Southern Greenland, Nanortalik and Tartoq, the company said in an announcement on July 27.
In a statement on Friday, Eldur Ólafsson, founder and chief executive officer of AEX Gold commented: "Today marks a highly exciting moment for AEX Gold, with our successful fundraise allowing us to progress our corporate vision, whilst also providing UK and European investors with the opportunity to be a part of Greenland's growing gold sector.
“We now have the financial capacity to push forward to production at our high-grade Nalunaq gold mine together with targeted exploration across our wider gold acreage in Southern Greenland.
“Our ambition is to become a full-cycle gold mining business of scale in Greenland, with Nalunaq the first project in what we believe could be many from our existing portfolio of gold assets."
Non-executive director appointment
In conjunction with the company's admission to AIM, AEX Gold also announced that Sigurbjorn (Siggi) Thorkelsson had joined its board as an independent non-executive director, and chair of the Audit Committee on July 27, 2020. it noted that Thorkelsson has a wealth of experience in the financial markets, having worked at major financial institutions throughout his career with over 25 years' experience in the banking and securities industry across New York, London, Tokyo, Hong Kong and his native Iceland.
Thorkelsson has previously served as managing director at Nomura International (Hong Kong) Limited and as Head of Asia-Pacific Equities before becoming senior managing director of the Nomura Group. In 2010, he moved to Barclays Capital (Hong Kong) as managing director and head of Asia-Pacific Equities before becoming managing director (Head of Equities EMEA) at Barclays Capital in London in 2011. More recently, Thorkelsson has co-founded investment and securities companies in Iceland and in the UK.
Eldur Ólafsson commented: "Siggi is a highly experienced financier and brings the benefit of his many years of experience and guidance to our Company, both as a banker and an investor, and we look forward to rapidly progressing our high-impact portfolio under his stewardship as a non-executive director of AEX."
In afternoon trade in London, AEX Gold shares were changing hands at 46p each.
-- Adds non-exec director appointment, updates share price --