Irish gold and zinc explorer Arkle Resources is seeking to raise £250,000 (€279,800) via a share placing, the company said on Monday.
Arkle, which was founded by John Teeling, said it would issue 33,333,333 new ordinary shares at a placing price of 0.75p per share.
The net proceeds raised will be used for further exploration activities at the Stonepark zinc project in Co Limerick, and fund other exploration activities including on the company’s 100 per cent owned gold exploration projects.
An application will be made for the admission of the shares to trading on AIM, which is expected to occur on or around May 22nd.
Arkle chief executive Patrick Cullen said: "The high grade of the Stonepark deposit, its relatively shallow depth and its strategic location next door to Glencore's Pallas Green deposit have generated significant interest leading to the transaction, which significantly strengthens Arkle's balance sheet going forward.
“We believe this investment and confirmation that our joint venture partner has received further funding from Glencore is a strong endorsement of the Stonepark project.
“Furthermore, there is exciting exploration potential in the south of the project along the Pallas Corridor. We look forward to drilling recommencing as planned in August, subject to Covid-19 restrictions.”
