Connemara Mining, the AIM listed zinc exploration company, has raised £1.06m through a placing of 5,283,000 new ordinary shares of €0.01 each at a price of 20 pence per ordinary share, it was announced.
The proceeds from the placing will finance expected drilling at the Stonepark zinc discovery in Limerick and a new drilling programme on licences adjacent to the Lisheen zinc mine.
The Stonepark programme is a joint venture with and operated by Teck Ireland Ltd., a subsidiary of Teck Resources Limited - Canada's largest diversified mining company.
The new shares have been placed with a number of new and existing investors by Smith & Williamson Corporate Finance Limited and Optiva Securities Limited.
The placing has been performed under existing share allotment authorities, and the placing shares equate to 25.8% of the enlarged issued share capital of the company following completion of the placing.
Application will be made for the placing shares to be admitted to trading on AIM.
Dealing is expected to commence on or about July 26, 2010. Completion of the placing is conditional, amongst other things, on such admission becoming effective.