GreenX Metals, a London, Australian, and Warsaw-listed exploration and development company, announced on Thursday that it has successfully raised £2.1 million ($2.7 million) through a share placing. The funds will be used to support the company’s exploration efforts in Greenland.
The share placing involved the issuance of 5.2 million new ordinary shares, priced at 41 pence each. This represents a 20% discount to GreenX Metals’ closing price of 51.0 pence in London the day before.
In addition to the proceeds from the share placing, GreenX Metals also has existing cash resources of A$8.7 million as of June 30, 2023. With these combined funds, the company is confident in maintaining a strong balance sheet position.
As a result of the capital-raising announcement, trading in GreenX Metals’ shares was temporarily suspended on the Australian Securities Exchange (ASX) on Wednesday. However, the company anticipates that trading will resume on the ASX by Friday.
At 0729 GMT, shares in GreenX Metals were trading down 8.8% at 46.50 pence on the London Stock Exchange.
