GCM Resources PLC on Tuesday said that it has raised £2.0 million via a subscription of 30.8 million shares at 6.5 pence each.
GCM is a mining company focused on the Phulbari coal and power project in Bangladesh.
The subscription price represents a discount of 25% to the closing price of 8.63p for GCM’s shares on Monday. The issue will represent 11% of the company’s enlarged issued share capital.
According to GCM, the net proceeds will be used for working capital purposes, in order to progress the Phulbari coal and power project through the next 16 months.
‘I am delighted with the support from the London Market, which comes at a time when we are increasingly more confident that the Government of Bangladesh is receptive to the advantages of domestic energy production; our focus and main effort now is to secure the consent to develop the Phulbari Coal and Power Project, which we are well placed to develop alongside our global energy infrastructure partners, Power China,’ said Chief Executive Officer Michael Tang.
GCM shares were trading 11% lower at 7.65 pence each in London on Tuesday afternoon. The firm has a market cap of £18.8 million.
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