Gold producer Caracal Gold is raising £780 000 by way of a subscription through the issue of 260-million new ordinary shares of £0.001 in the company at a price of £0.003 a share.
The funds of the subscription will be paid in five equal instalments of £156 000 and the company will issue 260-million new ordinary shares upon completion of the final instalment.
The first instalment was paid on March 25, with the next one due on March 28. Further instalments will be paid on April 5, 9 and 12.
The subscribers will be issued one warrant for every new share subscribed for, with an exercise price of £0.0042 a warrant. The warrants will expire in three years from admission of the subscription shares to trading.
Caracal, which owns gold projects in Kenya and Tanzania, says the funds will be used for working capital by the company and its subsidiaries.