The Cora Gold Ltd (LON: CORA) share price increased 2.44% after revealing that it had conditionally raised US$19.843 million in equity and convertible bonds. The company said that the amounts raised are subject to approval from a general meeting of shareholders scheduled for 28 February 2023.
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The gold company, focusing on West Africa, said it would use the funds raised to advance its flagship Sanankoro gold mine in Southern Mali. Cora reminded investors of the Optimised Project Economics report on 21 November 2022, highlighting the project’s robust economic fundamentals.
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Investors muted reaction to the announcement was because this was not the first time that Cora had made the details of the fundraising public. The company first revealed its plans on 6 February 2023, triggering a three-day decline to the current price, which aligns with the price offered to the participating investors.
Cora Gold revealed that it raised gross proceeds of US$3,928,169.26 through equity financing by issuing 80,660,559 ordinary shares priced at US$0.0487 per share. It raised the remaining US$15,915,000 by issuing convertible loan notes under Convertible Financing.
The gold company said it would apply for the listing of the new shares issued through equity financing on the London Stock Exchange's AIM market after the shareholders' general meeting scheduled for 28 February 2023.
Cora also published a list of the leading shareholders, including directors who participated in the equity financing, raising their stakes in the company. Many expect the firm’s shareholders to approve the recent fundraising activities, which are crucial to advancing the Sanankoro gold mine.
Bert Monro, Cora Gold’s CEO, commented: “I am very pleased with the strong support received for this fundraising from many of our existing shareholders as well as new investors. Over the coming months, we look forward to providing progress updates on our flagship Sanankoro Gold Project.”
*This is not investment advice.
Cora Gold share price.
The Cora Gold share price edged 2.44% higher to 4.20p from Thursday’s closing price of 4.10p.
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