Adriatic Metals PLC (LSE:ADT1, ASX:ADT, OTCQX:ADMLF) has raised £25.1 million of new capital in a share placing to fund an expanded and accelerated exploration programme at Rupice and Rupice Northwest deposits in Bosnia and Herzegovina.
It follows a “very successful” exploration campaign and resource upgrade, chief executive Paul Cronin highlighted.
The exploration company, in a statement, confirmed it would be issuing 14.77 million new shares priced at 170p each, a modest 5.1% discount, amid strong investor support.
“We believe this funding will enable Adriatic to accelerate and expand our exploration activities, which will position Adriatic as one of the leading base and precious metals developers in Europe," Cronin said today.
The placing was organised by brokers Morgans Corporate, RBC Europe and Stifel Nicolaus.
The result of the placing was announced as closed this morning, after an accelerated bookbuild process was launched after market close on Monday. It sought to raise US$30 million and it secured slightly more, with the brokers securing commitments for US$32 million (£25.1 million).
In yesterday's statement, Adriatic told investors that US$20 million of the raise will be earmarked for the work at Rupice and Rupice Northwest, where the company has enjoyed recent successes.
Meanwhile, US$5 million will be used as general working capital associated with exploration and a further US$5 million will support the company as it seeks growth opportunities and cover general corporate purposes and fees.