Keras Resources PLC (AIM:KRS) is raising £1.95mln via a placing and broker option at 0.12p per share, following on from its acquisition of the Diamond Creek phosphate mine at the end of March.
The new shares are being issued at a 7% premium to the current share price, and £1.2mln has already been committed by a cornerstone investor, First Uranium Resources.
The broker option for £750,000 is designed to allow existing and new shareholders to participate.
The money will used to enhance current operations and maximise future potential of the Diamond Creek asset.
To expedite this, Graham Stacey has been appointed chief executive and Russell Lamming moves to non-executive chairman.
Each new share comes with a warrant to subscribe for one further share at any time up to 31 May 2024 at an exercise price of 0.18p.