Amaroq Minerals seeks £20 million for Greenland growth

Published 03/12/2024, 18:10
Amaroq Minerals seeks £20 million for Greenland growth

TORONTO - Amaroq Minerals Ltd. (AIM, TSX-V, NASDAQ Iceland: AMRQ), a mining company operating in Southern Greenland, has announced plans to raise approximately £20 million (around C$35.6 million or ISK 3.5 billion) through the issuance of new common shares. The proceeds are intended to support the company's growth initiatives, particularly as its Nalunaq project progresses through the commissioning phase.

The fundraising effort involves a placing of new common shares in the UK and depositary receipts in Iceland, both at a price of 86 pence per share, as well as a private placement in Canada. Landsbankinn hf. has committed to underwriting up to £10 million of the fundraising.

The company aims to use the net proceeds for various purposes, including expanding resource drilling at the Nalunaq mine, exploring the Nanoq gold target, investing in mining equipment and green energy production, and advancing strategic minerals ventures with joint venture partners.

The fundraising will be executed under the company's current authority to allot equity securities, negating the need for a general meeting. The UK placing will be conducted through an accelerated bookbuild process, expected to close no later than 7:00 a.m. on December 4, 2024. The Icelandic placing is underwritten by Landsbankinn, with the bank committed to securing the full amount if necessary.

Eldur Olafsson, CEO of Amaroq, expressed optimism for the company's prospects following the first gold pour at Nalunaq and the establishment of key offtake agreements. He highlighted plans for further drilling at Nanoq and evaluating recent copper and nickel exploration results. Additionally, Olafsson mentioned the possibility of Amaroq transitioning to a listing on the Main Market of the London Stock Exchange (LON:LSEG).

This fundraising initiative is based on a press release statement and aims to bolster Amaroq's position in exploiting the resource potential of Southern Greenland.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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