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 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$20mln of the raise would be earmarked for the work at Rupice and Rupice Northwest, where the company has enjoyed recent successes.
Meanwhile, US$5 million would be used as general working capital associated with exploration, and, a further US$5 million would support the company as it sought growth opportunities and covered general corporate purposes and fees.