7th Apr 2021 12:36
(Alliance News) - Argos Resources Ltd has raised USD550,000 as part of its bid to extend a licence in the Falkland Islands, it announced on Wednesday.
The money was raised through the subscription to 14.4 million new shares at a price equivalent to 2.75 pence each by new shareholders and Executive Chair Ian Thomson.
The drilling and production licence, PL001, covers an area of 1,126 square kilometres in the North Falkland Basin.
Argos Resources said it remained engaged in discussions with counterparties who had expressed an interest in participating in drilling in the area covered in the license.
Thomson said the cash from the share subscription, combined with the company's existing cash of GBP235,000 as of late last month, will provide working capital for the group until at least until May next year, being the requested extension date of the licence.
In order to enable the company to progress discussions with potential partners, back in February the board requested a 12 month extension to the second term of the licence from the Falkland Islands government. It had been due to expire on May 1.
The Falkland Islands government had said that as part of it considering the request, and Argos Resources needed to demonstrate that it could secure sufficient funds to meet its working capital requirements until at least the period of the extension requested.
The fund raise is conditional on approval by shareholders at a general meeting to be held on April 30.
Shares in Argos Resources were trading 11% higher at 3.00 pence in London on Wednesday at midday. The stock is up 40% so far in 2021.
By Will Paige; [email protected]
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