22nd Apr 2016 08:10
LONDON (Alliance News) - Patagonia Gold PLC on Friday said it will raise GBP6.9 million through the issue of 463 million shares at 1.5 pence each.
The proceeds will be used to provide general working capital and to finance the commencement of the open pit mine and heap leach processing facility at Cap-Oeste.
Non-Executive Chairman Carlos Miguens has subscribed for 232.5 million shares through his controlled entity Cantomi, raising GBP3.5 million. The remaining shares will be issued via an open offer.
Miguens currently holds 213.8 million shares in the company, both directly and through Cantomi, representing 20% of its issued share capital.
"We are pleased to have secured the funding for the development of Cap-Oeste heap leach project that will provide the company with cash generation to further evaluate the development of Cap-Oeste as well as fund its exploration activities in Argentina and Uruguay," Chief Executive Christopher van Tienhoven said in a statement.
Shares in Patagonia Gold were untraded on Friday morning, last traded at 1.64 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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