15th Jan 2015 08:40
LONDON (Alliance News) - Alecto Minerals PLC saw its share price almost cut in half on Thursday after it said it has raised GBP600,000 by way of a placing with new and existing shareholders at a 40% discount.
Alecto shares were down 42% to 0.322 pence per share on Thursday morning.
The funds were raised after the company issued 200 million shares in the company at a price of 0.3 pence per share, a 40% discount to the company's closing share price on Wednesday.
"The placing price, at a discount of 40% to the closing bid price per share on January 14, 2015, reflects the funding challenges facing exploration companies in today's market," said Chief Executive Mark Jones.
The funds from the placing are to be used for potential joint ventures in African gold projects, it said.
"A stronger balance sheet improves our negotiating position in joint venture and acquisition discussions," said Jones.
By Joshua Warner; [email protected]; @JoshAlliance
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