Connemara Mining has announced it intends to sell 5,250,000 new shares at 20p in order to increase its drilling operations.
The Irish AIM listed zinc exploration company intends to expand its Limerick exploration programme and drilling on the 100% owned Thurles block of licences in Tipperary.
Allocated to each new share is a 12-month warrant to buy one share exercisable at a price of 35p.
Should the Connemara price stay at or above 35p for five consecutive trading days during the exercise period, the directors can call for an early conversion.
If the warrants are not then exercised, they will lapse after 21 days.
The firm has five drill rigs working on the Stonepark zinc discovery in Limerick where up to 65 holes will be drilled this year.
Diamond drilling has also commenced in the Thurles area close to the Lisheen zinc mine. This is to follow up targets identified in earlier prospecting.
Work is ongoing on the company’s Mallow block of licences, adjacent to the old Silvermines lead mine, while options on the Lough Sheelin block are being examined.
John Teeling, Chairman, said: "World demand for zinc continues to grow. Prices are rising. We have excellent ground in Ireland in Limerick, where our partner Teck has an expanded exploration programme as well as at locations near the Lisheen mine and the old Silvermines mine, both in Tipperary. These funds will expand our 2011 drilling programme."
The share placing, arranged by Optiva Securities, represents 20.42% of the enlarged share capital.
Application will be made for the placing shares to be admitted for trading on AIM.
Dealing is expected to commence on or about March 3, 2011.