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European Metals raises ?0.35m to fund ongoing Cinovec development
10th Jan 2020 13:22
(Sharecast News) - European Metals Holdings has raised gross proceeds of £0.35m via a share placing to UK investors, it announced on Friday.
The AIM-traded firm said the placing issue price of 15.25p each represented a 1.6% discount to the closing AIM price on 8 January.
A total of 2,295,080 new ordinary shares of no par value in the company were placed with new and existing investors, by way of the issue of depositary interests representing the placing shares.
The board said the net placing proceeds would be used to continue to advance European Metal's corporate strategy, including to progress the development of the Cinovec Project, and to finalise the proposed investment by CEZ Group.
It said the placing was intended to allow it to continue to develop the Cinovec Project with "the greatest degree of flexibility", while the CEZ Group finalised an investment decision.
European Metals had announced a three month extension to the timetable of the proposed transaction with CEZ to 31 March in November.
The placing would enable the firm to continue with development plans, given that extension.
It said it was in the process of planning the definitive feasibility study, particularly the planning of the detailed engineering and further drilling enabled by the extension of the exploration permit, as it announced on 5 August.
"Following the announcement of the three-month extension to the timeline of the proposed CEZ transaction, we have received further funding proposals from equity investors," said managing director Keith Coughlan.
"The board felt it prudent to take the opportunity to strengthen the balance sheet whilst concluding these discussions.
"With the approval of shareholders now received at the recent EGM, we look forward to concluding the proposed investment by CEZ as we believe their participation in the project will be beneficial for all stakeholders."
At 1204 GMT, shares in European Metals Holdings were up 0.26% at 15.29p.
The AIM-traded firm said the placing issue price of 15.25p each represented a 1.6% discount to the closing AIM price on 8 January.
A total of 2,295,080 new ordinary shares of no par value in the company were placed with new and existing investors, by way of the issue of depositary interests representing the placing shares.
The board said the net placing proceeds would be used to continue to advance European Metal's corporate strategy, including to progress the development of the Cinovec Project, and to finalise the proposed investment by CEZ Group.
It said the placing was intended to allow it to continue to develop the Cinovec Project with "the greatest degree of flexibility", while the CEZ Group finalised an investment decision.
European Metals had announced a three month extension to the timetable of the proposed transaction with CEZ to 31 March in November.
The placing would enable the firm to continue with development plans, given that extension.
It said it was in the process of planning the definitive feasibility study, particularly the planning of the detailed engineering and further drilling enabled by the extension of the exploration permit, as it announced on 5 August.
"Following the announcement of the three-month extension to the timeline of the proposed CEZ transaction, we have received further funding proposals from equity investors," said managing director Keith Coughlan.
"The board felt it prudent to take the opportunity to strengthen the balance sheet whilst concluding these discussions.
"With the approval of shareholders now received at the recent EGM, we look forward to concluding the proposed investment by CEZ as we believe their participation in the project will be beneficial for all stakeholders."
At 1204 GMT, shares in European Metals Holdings were up 0.26% at 15.29p.