Cobra Resources PLC (LSE:COBR), an exploration company advancing the Wudinna gold project in South Australia, said it raised gross proceeds of about £945,000 from a placing yesterday.
It placed 63mln shares at 1.5 pence each and will use part of the funds to finance exploration work this year.
Non-executive director David Clarke bought 6.34mln shares and Australian financial services firm Taylor Collison Ltd also acquired an undisclosed sum.
"We are pleased to see the level of interest shown in this oversubscribed raise,” said chief executive Rupert Verco. “This puts the company in a position to execute its exploration work programme from which we expect to generate considerable news flow.”
“The participation of Taylor Collison has seen the addition of more institutional investors with a long-term approach to investment. This highlights the significance of the rare earths discovery and its value-add potential to our existing gold mineral resource estimate."
It noted that the participation of South Australia-based Taylor Collison was is a result of considerable interest from Australian investors arising from the recent rare earths discovery at the Clarke prospect, within Wudinna.
READ: Cobra hits gold and rare earths in latest round of drilling at Clarke
“While there remains much work to be done to refine the extent of this discovery and understand its potential, there is no doubt that the occurrence of rare earths above defined gold mineralisation places Cobra in a unique position in the sector,” Cobra chairman Greg Hancock said ahead of the placing.
SI Capital Ltd and Taylor Collison acted as joint bookrunners.