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(Sharecast News) - Greenland-focussed mining company Amaroq Minerals announced the completion of an oversubscribed fundraising on Wednesday, raising gross proceeds of £27.5m to be used in accelerating its portfolio of gold and strategic mineral assets.
The AIM-traded firm said the funds were secured through the conditional placing of 32,034,664 new shares at 86p each.
It said the offering exceeded the initial £20m target, reflecting strong demand from new and existing institutional investors.
Amaroq said the proceeds would be directed towards accelerating growth opportunities across Amaroq's portfolio of gold and strategic mineral assets in Southern Greenland, and strengthening its working capital position.
The new shares would represent about 8.1% of Amaroq's enlarged share capital.
It said the fundraising was supported by Panmure Liberum and Canaccord Genuity, who acted as joint bookrunners and brokers for the UK placing.
In Iceland, Landsbankinn, Acro verðbréf and Fossar fjárfestingarbanki served as joint bookrunners, with Landsbankinn also acting as an underwriter.
The new shares were expected to begin trading on AIM, the Icelandic Exchange and the TSX-V on 16 December.
"I would like to thank all investors, both existing and new, for their strong support in this significantly oversubscribed fundraising," said chief executive officer Eldur Olafsson.
"With a number of exciting catalysts ahead of us, including the expected optimisation and ramp-up to commercial production at Nalunaq and advancement of our wider exploration programme, we look forward to providing further updates on key operational work streams in due course."
At 1045 GMT, shares in Amaroq Minerals were up 2.68% at 89.12p.
Reporting by Josh White for Sharecast.com.
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