4th Jul 2016 08:22
LONDON (Alliance News) - ECR Minerals PLC shares plummeted on Monday after the company raised GBP350,000 after issuing shares at a discount of almost 38%.
The miner has issued 3.50 billion new shares in the business for a price of 0.01 pence each, compared to its closing share price last Friday of 0.016 pence.
The shares issued represent 29.2% of the enlarged issued share capital of the business - which now stands at 11.98 billion shares.
ECR shares were down by 29% on Monday morning to 0.0114 pence per share.
The funds were raised through PrimaryBid.com, a crowdfunding platform for AIM listed companies. ECR Minerals said PrimaryBid has already provided a "placing commitment" of GBP60,000 to the company.
The net proceeds will amount to GBP323,750 and will be used to repay all amounts owed by the Company under the convertible loan facility in place with YA II PN Ltd, formerly known as YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors Global LP.
"While recognising the value to the company of the financial support provided by the facility to date, the directors do not intend to make further use of the facility, or to make use of similar facilities in the foreseeable future," said ECR.
ECR said it is "pressing ahead" with its assessment of the Avoca gold project in Victoria, Australia, where the potential to generate relatively short-term cash flow from the reprocessing of historical waste dumps to extract remnant gold is being evaluated.
By Joshua Warner; [email protected]; @JoshAlliance
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