28th Oct 2015 18:08
LONDON (Alliance News) - BMR Mining PLC said late Wednesday that it has raised GBP750,000 through the placing of 18.75 million shares at a price of 4.0 pence each.
The Zambian-focused mineral processing business said that each placee will also receive a warrant to subscribe for a further share at 7.0 pence in the 42 days following the publication of its results for the year to end-June.
Shares in BMR Mining closed up 2.4% at 5.38 pence.
It said that 66.67% of this placing has been subscribed for by Lexinta Group, an asset management firm head-quartered in Switzerland.
The company said it will use the proceeds of the placing to part finance a pilot plant at Kabwe in Zambia, and provide working capital as it progresses its plans to commence processing.
BMR said that it has cut its normalised monthly central costs in the year to end-June to GBP110,000 from GBP250,000, and said that such costs are projected to fall to around GBP65,000 by January 2016, once it has exited from the lease of its former head office in London.
"This placing provides BMR with the necessary funds to commence revenue generating pilot plant operations at Kabwe. Our objective is to utilise these revenues to finance the proposed main plant. As I have previously committed to shareholders, we will make a similar amount of new shares available to shareholders on the same terms, including warrants, in the near future," said Chairman Alex Borrelli in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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