Glencar places €1.1m new shares

Glencar Mining revealed yesterday that its recent placing of €1.085 million worth of new shares was fully subscribed.

In a statement accompanying its interim results yesterday, chief executive, Mr Hugh McCullough, said Glencar had received subscription applications for the full amount of the placing, which was now closed.

The Dublin- and London-listed company announced the placing on September 5th. It is issuing 35 million shares at 3.1 cent to raise a total of €1.085 million.

At end-June, Glencar announced its creditors, Standard Bank London and CDC Group, had agreed to waive their right to repayment under a $3 million (€2.66 million) loan note in exchange for 12 million shares in the company and the option to purchase 7.5 million shares for 3.1 cents. The deal left Glencar with no debts.

Glencar last year sold its majority stake in the Wassa gold interest in Ghana, Africa, to Gold Star Resources. As a consequence, its accounts for the six months to June 30th, 2003 show no turnover, as none of its other interests are currently producing. Gold sales during the comparable period last year were $1.2 million.

The company posted a first-half pre-tax loss of $610,142 (€540,634), compared with a deficit of $3.6 million (€3.2 million) last year. Losses per share were down to 0.55 cent, compared with 2.13 cent last year.