Cobra Resources to Raise GBP1.3 Mln for Rare Earth, Gold Resource Growth
Summary
Cobra Resources PLC said Wednesday that it has conditionally raised around 1.3 million pounds ($1.5 million) via a discounted placing, and that it will use the proceeds to fast track its rare-earth and gold resource growth as well as for general working-capital purposes.The U.K.-based Australia-focused mining company said it will place 86.7 million ordinary shares at 1.5 pence a share, representing an 18% discount to Tuesdays closing price of 1.83 pence a share.The company said that all of the directors, as well as substantial shareholders, have subscribed for shares at the placing price. "Funds being raised through this placing will enable us to fast track our rare-earth resource growth and continue to advance our existing gold mineral resource through strategic exploration work, which should generate significant shareholder value," Chairman Greg Hancock said.Shares at 1510 GMT were down 0.30 pence, or 16%, at 1.60 pence.