2nd Apr 2020 14:10
(Alliance News) - Conroy Gold & Natural Resources PLC said on Thursday some of the funds raised in a February share placing have yet to be received.
Conroy raised GBP302,500, of which GBP250,000 was in a placing at 12 pence per share and the rest in a subscription at the same price.
Shares were 20% lower on Thursday afternoon in London at a price of 6.00p each.
The funds were to be used for further exploration work at the company's Clontibret Clay Lake and Glenish gold targets in Ireland.
However, on Thursday Conroy said one investor still has to pay GBP163,000, having already paid GBP12,000. The miner said the investor has confirmed it plans to settle its obligation in full "within a reasonable timeframe".
Further, one investor in the subscription has yet to pay the GBP25,000 signalled, and Conroy said that party has likewise reiterated his commitment to pay "as soon as practicable".
The placing was run by Conroy's broker, Brandon Hill Capital Ltd, or BHC.
"BHC has been in regular dialogue with both investors and reasonably expects settlement in full on the basis of assurances received from both parties. BHC continues to work with both investors to resolve the settlement issues that stem from the extraordinary circumstances in the financial markets at this current time. Given current economic uncertainties, there may however be a material risk that the full funds may not be received," said Conroy.
"Given the current restrictions on operations and movement as a result of the Covid-19 pandemic, the company does not believe the delay in the settlement will have any material impact on its working capital position or operational activities, assuming the funds are forthcoming in the short term."
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Conroy Gld&nres