Tethyan Resources raises £1m for drilling at Serbian copper mine

AIM-listed miner Tethyan Resources has raised £1m to fund exploration work at its Suva Ruda copper project in Serbia.

The company raised the funds from an equity placing of 22.22m shares at 4.5p each with new and existing investors, including major shareholder Southern Arc Minerals and a number of the company’s directors.

The net proceeds of about £950,000 after fees and expenses will used for a 6,000 metre exploration drilling programme at Suva Ruda expected to start in late April and for general working capital.

Chief executive Peter Mullens said the funds raised will allow the company to move forward with the work program over the summer to advance the Suva Ruda project and to build a pipeline of projects.

The new shares are expected to be admitted to trade on AIM around 3 April and following admission Tethyan will have an issued share capital of about 168.18m shares with voting rights and none held in treasury.

Shares in Tethyan Resources were down 4.39% to 4.90p at 0843 BST.