Amaroq Minerals fundraising oversubscribed by almost 50pc

Amaroq Minerals announced the conclusion of its proposed fundraising on Tuesday, which it said was met with overwhelming demand.

The AIM-traded independent miner, focussed on gold and strategic energy transition minerals in Southern Greenland, said it had completed the placing of 62,724,758 new fundraising shares.

It said the shares were placed with both new and existing institutional investors at a price of 74p per share, resulting in net proceeds of £44m.

The net proceeds, exceeding the initially-targeted £30 million, were earmarked for further exploration activities at Amaroq's Vagar and Nanoq licences, as well as an additional capital injection into its Gardaq joint venture.

Amaroq said the total fundraising shares represented roughly 19% of the company’s enlarged share capital after the fundraising.

It added that the placing price of 74p per share carried a 5.7% premium over the closing price on AIM on 9 February, which was the last practical closing price before it announced the fundraising.

Stifel Nicolaus Europe acted as the sole bookrunner and broker for the UK placing, as well as the company’s nominated adviser.

Landsbankinn and Fossar Investment Bank were joint bookrunners for the Icelandic placing, with Landsbankinn serving as the underwriter.

“I would like to thank all participating shareholders for their strong support shown in this financing,” said chief executive officer Eldur Olafsson.

“We were particularly pleased to note strong demand from the Scandinavian pension funds.”

Olafsson said the funds raised would enable the firm to accelerate mining at Nalunaq, while continuing to invest in its exploration portfolio in both gold and strategic minerals across South Greenland.

“We now have great confidence in delivering on our objectives at the Nalunaq Mine and in enhancing our potential to deliver value for shareholders and local communities within Greenland, and I look forward to providing an update on specific timings for the Nalunaq project later this year.”

At 1324 GMT, shares in Amaroq Minerals were up 2.62% at 75.43p.

Reporting by Josh White for Sharecast.com.