23rd May 2019 10:45
LONDON (Alliance News) - Georgian Mining Corp on Thursday said it raised GBP380,000 in a share placing and subscription.
The miner issued 19 million shares at 2.00 pence each. Shares in the company were trading 22% lower at 2.00p each on Thursday. The stock had closed at 2.57p on Wednesday.
The net proceeds of the placing will be mainly used to sustain operations in Georgia during the exploration permit renewal process, the company explained.
Furthermore, the remaining funds will be used to identify new assets on which the company can add short term value, as well as for general working capital purposes.
Non-Executive Director Peter Damouni subscribed for 500,000 placing shares. Following this purchase, he owns 907,500 shares, representing 0.79% of the company's capital.
In addition, certain directors of the company, being Neil O'Brien, Gregory Kuenzel, Laurence Mutch and Peter Damouni have agreed to completely write off their compensation for the past 12 months. Chief Executive Officer Michael Struthers will instead write off part of his compensation for the past 12 months, with the total amount of the write off being GBP275,000.
Admission of the new shares to trading is expected to take place on AIM on May 30.
Related Shares:
Georgian Mining