Sula Iron & Gold raised $400,000 to develop Sierra Leone mine

Shares in AIM-listed Sula Iron and Gold soared nearly 13% on Thursday after raising equity through a subscription of shares to develop its Frensola gold project in Sierra Leone.

The company raised $400,000, before expenses, through a subscription of about 304.6m shares of 0.1p sold at 0.1p, representing 26.16% of its issued share capital.

The shares were subscribed by Madini Occidental, a private company listed in the Seychelles owned by Madini Mineral, which now has 75% interest, and Ian Schofield, a private high-net worth investor with experience investing in natural resources companies.

Subject to the subscription, Roger Murphy from Madini will be appointed chief executive of Sula, in place of its founder Nick Warrell who will become chief operating officer.

A second nominee from Madini for a non-executive director will be made in due course.

Murphy highlighted the additional skills that Madini brings to Sula and its track record of developing African mining projects, the company complements Sula enabling the company to “unlock the undoubted value of the Ferensola gold project".

Ian Schofield, who has experience in investing in natural resources companies, also subscribed and has a 25% interest. He is also holds 9.2% of the issued share capital of Madini.

Sula agreed to issue a further 15.2m shares together with commission warrants to Madini or its nominated subsidiary.

The first tranche of $200,000 from 152.3m shares will admitted to AIM on Friday and the second tranche of $200,000 from 152.3m shares will be admitted on 18 October, with an enlarged share capital totalling 1.05bn.

Subject to receipt of the second tranche, Sula will issue 304.6m warrants to Madini Occidental to subscribe for shares at 0.24p each for five years.

Shares in Sula Iron and Gold were up 12.57% to 0.118p at 1119 BST.