10th Apr 2014 10:20
LONDON (Alliance News) - Strategic Minerals PLC Thursday said that it has raised roughly GBP1 million from new investors through a share subscription, issued shares to mining giant Glencore AG to pay off an obligation, and had identified about GBP650,000 of annual cost cuts.
The magnetite iron-ore producer and exploration company with operations in the US said it had issued 125.0 million shares at a price of 0.8 pence per share under the subscription and will use the funds primarily for working capital purposes.
The company also issued 45 million shares to Glencore AG at the subscription price, in exchange for a previous obligation owed to the miner.
Strategic Minerals said its board had undertaken a corporate review, which resulted in a roughly GBP650,000 annual reduction in corporate overheads and other savings, compared with 2013. The cost savings are expected to come into effect from the second quarter 2014.
Strategic Minerals shares were down 22.3% to 0.874, putting it top of the AIM All-Share fallers Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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