19th Jul 2016 11:11
LONDON (Alliance News) - Greatland Gold PLC on Tuesday said it has raised GBP409,500 for working capital and to accelerate its operations in Western Australia.
Greatland has raised the funds through the placing of 146.2 million shares at 0.28 pence each. Shares in Greatland were trading up 5.1% at 0.289p on Tuesday afternoon.
The precious and base metals exploration and development company also issued 146.2 million warrants to subscribe for the same amount of shares at an exercise price of 0.56p per warrant, within a 24-month exercise period.
This would potentially raise an additional GBP819,000 should the options be exercised.
The placing proceeds will be used for working capital purposes, accelerating operations in respect of certain existing interests and to position the company for acquisitive activities.
"The funds raised today drive the company's cash balances to approximately GBP1.3 million which provides considerable working capital as we commence active drilling at Bromus, and in due course Ernest Giles," Executive Director Callum Baxter said in a statement.
"Importantly the funds provide the company with the financial flexibility needed as we investigate and negotiate in respect of a number of new business opportunities. Whilst the board consider that the recovery in the natural resource sector has commenced, it still remains possible to negotiate commercial transactions on advantageous terms and Greatland therefore needs to act expeditiously in order to build its business interests in the current climate ready for the recovery phase to fully develop," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Greatland Gold