Conroy Gold and Natural Resources has raised £500,000 (€556,545) in a new placing and with plans to use the proceeds to further the company's exploration assets in Ireland.
The explorer said it successfully placed 3,636,365 new ordinary shares at 13.75 pence per share, a premium of 20 per cent on the previous day’s closing price.
Conroy said it intends to use the proceeds of the placing to fund the advancement of the company's gold assets, in particular the development of the Clontibret deposit, together with exploration focused on the Clay Lake, Glenish and Slieve Glah gold prospects within the 40-mile (65km) Armagh-Monaghan-Cavan gold belt.
The ongoing drilling at Conroy’s site comes as a result of a drilling programme announced in February. The company reported in April that it had discovered another gold zone at its Clontibret site in Monaghan. It was the second find of an “extensive gold zone” as Conroy identified success in an area south of the Tullybuck antimony mine earlier this year.
Market sources suggested the discovery was “interesting”, but that determining its commercial viability would require significant investment to discover the extent of the gold zone.
The company’s total issued share capital on admission of the new shares will consist of 23,693,039 ordinary shares.