Power Metal Resources PLC (AIM:POW) said it raised £1.05mln through a placing that will enable it to accelerate its business operations including “strategic exploration activities and corporate opportunities”.
The placing of 60 million shares was priced at 1.75 pence per share and has boosted Power Metal’s working capital to about £3mln.
"The new shares issued in the placing undertaken by the company represents dilution of just 4.5% of current issued share capital and adds a material further cash resource into the company at this opportunistic time,” said chief executive Paul Johnson.
“Power Metal has maintained a strong working capital position throughout 2021, notwithstanding significant investment in exploration and corporate development. The company is now at a key point where extensive exploration activities are underway and corporate activities are intensifying.
The placing will allow the company to expand its exploration budgets, accelerate corporate work and complete on a number of new initiatives.
The Power Metal board have been unable to participate in this placing as we are actively involved in a number of initiatives that due to the possession of potentially price sensitive information would preclude us from buying the company's shares at this time," he concluded.
The shares were up 7.1% at 1.88 pence in early trading.