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Pathfinder Minerals PLC on Tuesday announced a placing to raise £500,000 for general working capital purposes.
The Mozambique-focused natural resources explorer said it will place 100 million new shares at a price of 0.5 pence per share.
Shares in Pathfinder Minerals were flat at 0.45p on Tuesday morning in London.
Pathfinder Minerals will also issue warrants to the Financial Conduct Authority for over 5 million shares with an exercise price of 0.5p for two years.
The placing and issue of broker warrants are conditional on shareholder approval.
The company explained that it will use the proceeds from the placing for ‘general working capital purposes’ and to repay its loan facility of up to £160,000 plus interest.
Back in September, Pathfinder Minerals said it entered into an unsecured loan facility of up to £120,000 for working capital purposes, which is repayable in full on February 2. On Wednesday last week, the company announced it agreed with the lender to extend the repayment date to March 31, and that the facility has been increased by up to a further £40,000.
Pathfinder Minerals is also in discussions with Acumen Advisory Group LLC, an asset recovery specialist in Delaware, US, to grant an extension of Acumen’s exclusive option announced in September to acquire Pathfinder’s wholly owned subsidiary IM Minerals Ltd.
‘Through the placing, Pathfinder is strengthening its balance sheet, thereby enabling the company to pursue both new opportunities for value creation within the minerals sector and the monetisation of the company’s claim against the Government of Mozambique,’ Chief Executive Peter Taylor said.
Pathfinder launched a legal claim against the government of Mozambican for the loss of a licence in 2011, as the company said the Mozambican government facilitated the expropriation from Pathfinder of mining concession 4623C.
By Jaskeet Briah, Alliance News reporter
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