Alba Mineral Resources raises £0.45m
Francesca Morgan
RNS Newswire
10:02, 3rd August 2020

Alba Mineral Resources (AIM:ALBA) FOLLOW has raised £0.45m to accelerate the company’s near-term work activities at the Clogau Gold Project in the Dolgellau Gold Belt in Wales.

The group issued 692,307,692 new ordinary shares at 0.065p per share with one warrant to be issued for every two shares subscribed for.

The 346,153,846 warrants have an exercise price of 0.13p per share and an expiration date of 24 months from the date of issue. The warrants will also be subject to an accelerator provision, such that if at any time during the 24 month duration of the warrants the 10-day volume-weighted average price (VWAP) of Alba ordinary shares exceeds 0.26p per share.

With the price of gold currently at an all-time high of almost US$2,000 per ounce, Alba highlighted to investors that its core focus remains on advancing its Clogau Gold Project.

The Project comprises the Clogau Gold Mine and includes a large number of highly prospective gold targets and former gold workings within a total option area of 107 km².

The proceeds will be used to accelerate the bulk sampling of several tonnes of ore from targets within the existing mine workings and drill several targets from underground, with the first phase expected to involve 5-10 holes for up to 500 metres of drilling.

Shares in Alba Mineral Resources were trading above the placing price at 0.7p following news of the fund raise.

The group said it will establish a gold pilot processing plant at or close to the mine site, carry out underground chip and channel sampling and 3D scanning, and surface trench new gold targets which Alba identified over a six-mile section of the Dolgellau Gold Belt.

Meanwhile, Alba also intends to complete the next phase of metallurgical testwork on the high-grade Amitsoq Graphite Project and to commission an independent scoping study on the Melville Bay Iron Ore Project where a JORC resource confirmed 67Mt at 31.4% of Iron.

Whilst all activities are subject to regulatory and third-party approvals and contractor availability, Alba said the process for obtaining approvals and finalising contracts is well underway.

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