JOHANNESBURG (miningweekly.com) – Zambia-focused zinc developer BMR Group has raised £620 000 through the placement of 9.25-million shares at 6.7p apiece.
Each placee will also, for each share subscribed, receive one warrant to subscribe for a further new ordinary share at 7p apiece in the 42 days following publication of BMR's results for the year ended June 30.
The net proceeds of the placing will be invested in the Star Zinc project, near Lusaka, as well as being used for general working capital purposes.
BMR also announced that the option agreement with Bushbuck Resources to acquire its large-scale Star Zinc prospecting licence had been extended until November 16.
BMR in August announced that it would acquire the prospecting licence, which contains high-grade zinc that can be blended with tailings from the leach plant residues to improve metal recoveries or to raise the plant head grade, to increase production at BMR’s proposed Kabwe processing plant.
BMR chairperson Alex Borrelli said the company was pleased to have concluded this placing, which was conducted following the interest to invest of a long-supporting shareholder in the company, Lewis Bagga, whose aggregate beneficial shareholding now amounted to 3.6% of the enlarged issued share capital.