Conroy raising £1.5m as it accelerates Discs of Gold

(Sharecast News) - Conroy Gold and Natural Resources announced the launch of a non-brokered private placing to raise up to £1.5m on Friday, as it looked to accelerate exploration at its Irish gold assets and progress its 'Discs of Gold' project. The AIM-traded explorer said it planned to issue new ordinary shares at 10p each, a 6.2% premium to the 10-day volume weighted average price, with each share to be accompanied by a warrant exercisable at 17p within two years.

It said the placing price represented an 11.1% discount to the stock's 11 September mid-market close.

The shares would be subject to a four-month lock-in period.

Conroy said the fundraising was aimed at bringing on board long-term value investors, mainly from North America, and was scheduled to close on or around 22 September subject to regulatory approvals.

Proceeds would be used for geological work in Ireland, to advance efforts to secure asset-level investment, and for general working capital.

"The board is pleased to announce the fundraise which, at a price of 10p per share echoes the confidence in the 'Discs' project shown by the terms of the May convertible loan fundraising and the recent support from current and former directors to restructure amounts owed to them by the company into success-linked instruments.

"This funding will enable the company to progress with carefully targeted development work on the 'Discs' project, while supporting ongoing discussions with potential strategic joint-venture partners and other asset-level investors."

At 1519 BST, shares in Conroy Gold and Natural Resources were down 7.56% at 10.4p.

Reporting by Josh White for Sharecast.com.