Arkle Resources (AIM:ARK), the Irish Gold and Zinc resources discovery company, is pleased to announce an oversubscribed placing of £600,000 (“Placing”) for 75,000,000 new ordinary shares at a price of 0.8p per share (“Placing Shares”).
The Placing will fully fund the Company’s planned sampling and drilling campaigns through to the end of 2021 on its gold properties at Mine River and Donegal. In addition, the funds will be used for the anticipated 2021 drilling programme for zinc in Limerick at the Stonepark Joint Venture (“JV”) and in surrounding areas, as well as for general corporate activities.
· Oversubscribed placing raised gross cash proceeds of £600,000 at 0.8p per share with a one for one warrant exercisable at 1.20p each, with a term of 2 years (“Placing Warrants”).
· Capital raised to fund increasing exploration on Arkle’s Irish gold targets at Mine River and Donegal.
· Mine River and Donegal are two strategic block of licences 100% owned by Arkle. Mine River has a 15 kilometre gold bearing trend.
· The funds will also be used for preparation and drilling for zinc in Limerick at the Stonepark JV and in surrounding areas.
· Stonepark contains a maiden Inferred Mineral Resource totalling 5.1 million tonnes at 8.7% zinc and 2.6% lead, occurring at depths from 190m to 395m below surface. The project lies adjacent to Glencore’s Pallas Green deposit which contains 45.4 million tonnes at 7% zinc and 1% lead, from 300m to 1,300m below surface.
· With this funding, Arkle is fully funded through 2021 and should the Placing Warrants be fully exercised, a further £900,000 in gross proceeds shall be received and Arkle would be fully funded well into 2022.
John Teeling, Chairman and CEO, commented. “This cash raise funds our ongoing gold and zinc exploration programmes until the end of 2021. We have crews working at both Mine River and Donegal targeting gold while drilling will commence this month on the Stonepark zinc project. Follow up drilling is anticipated on all three projects and we look forward to reporting back to shareholders on the results of those activities.”
ADMISSION, WARRANTS AND TOTAL VOTING RIGHTS
The Placing has raised £600,000 (before expenses), comprising 75,000,000 new ordinary shares at 0.8p per share. The issue of the Placing Shares and the possible issue of new Ordinary Shares from the exercise of the Placing Warrants, are made under the Company’s existing share authorities.
An application will be made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and that dealings in the Placing Shares on AIM will commence on or around 7 September 2020.
The Placing Warrants will not be admitted to trading on AIM or any other stock market and will not be transferable. The issue of the Placing Warrants is subject to Admission.
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that on completion of the Placing and following Admission, the Company’s enlarged issued ordinary share capital will comprise 291,044,926 Ordinary Shares.
The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement. In addition, market soundings (as defined in MAR) were taken in respect of the matters contained in this announcement, with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. This inside information is set out in this announcement. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the company and its securities.
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