Alecto raises £600k through placing?

PUBLISHED: Jan 15 2015 @ 14:31 | Comments (0) |

Placing to Raise £600,000 gross

Alecto Minerals plc (LSE:ALO), the AIM quoted mineral exploration company focussed on West and East Africa, has said that it has raised £600,000 (before expenses) by way of a placing, via Hume Capital Securities plc, of 200 million new ordinary shares of 0.01 pence each in the capital of the Company at a price of 0.3 pence per Placing Share, with certain new and existing shareholders.

The net proceeds of the Placing will provide the Company with additional working capital as it progresses discussions, in line with its strategy, to form potential joint ventures for the advancement or early monetisation of opportunities across its gold portfolio in Africa and whilst it continues to explore and evaluate potential attractive opportunities to expand the Company’s asset base.

Currently, the Company’s core portfolio consists of: the recently acquired KerbouléGold Project in Burkina Faso, where the Company is focussed on delineating a JORC resource estimate in 2015; the Kossanto East Gold Project where the Company has identified a JORC inferred resource estimate of 247,000 ounces of gold; the Kossanto West Gold Project where the Company continues to hold early stage discussions regarding a potential joint venture for its advancement; and two gold projects in Ethiopia which are currently subject to a joint venture with Centamin plc.

Alecto’s CEO, Mark Jones, commented:

“We are delighted to have successfully raised £600,000 in the prevailing difficult market conditions for the natural resources sector. The additional funds will further enable us to position our portfolio effectively, whilst at the same time working towards a more advanced project that the company believes can be funded through to production. A stronger balance sheet improves our negotiating position in joint venture and acquisition discussions. Whilst the placing price, at a discount of 40% to the closing bid price per share on 14 January 2015, reflects the funding challenges facing exploration companies in today’s market, it puts the Company in a much stronger and better position to achieve its goals in 2015.”

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