Power Metal Resources PLC (AIM:POW) said it completed a placing to raise £800,000, before expenses, to advance some priority exploration projects and for general working capital.
The funds raised will support the acceleration, and allow for the potential expansion, of the ongoing geophysics and upcoming drill programme at the Molopo Farms Complex project in Botswana, where drilling is set to start mid-September targeting a large-scale nickel sulphide discovery.
"Our work at the Molopo Farms project in Botswana continues to support the potential for a nickel sulphide discovery in what is a unique district scale land package where we will be diamond drilling not only one electromagnetic (EM) conductor, but multiple conductors located across a large project footprint,” said chief executive Paul Johnson.
Power Metal recently reported significant results from an EM survey at the project which confirmed that drillhole K1-6 had penetrated the edge of a newly identified magnetic conductor.
READ: Power Metal Resources reports significant results from EM survey at Molopo Farms Complex
“Considering the scale of the conductors identified, especially that at priority target area T1-6, and the number of conductors being targeted it was clear that we needed to be prepared for the possibility of an expanded campaign at the project and we have undertaken the financing to position for that expansion,” Johnson said.
It issued 57.14mln shares at 1.4p each, matching Friday’s closing share price. Each share also includes a warrant to subscribe for one new share at an exercise price of 2.0p with a 12-month term from 19 September 2022.
The placing was undertaken by the company's joint broker First Equity Ltd.