Metals Exploration to raise new funds for Runruno gold mine

LONDON (ShareCast) - (ShareCast News) - Metals Exploration (LSE: MTL.L - news) announced a share placing, an open offer and a debt securities issue to raise funds as it looks to get permits for its Runruno gold mine in the Philippines. The group said it has secured commitments to raise $5m via the issue of 108m shares at 3p per share from existing shareholders. This represents a 27% discount to the closing mid-price of 4.125p on 17 September.

In addition, Metals Exploration said it will offer up to 100m new shares at 3p each through an open offer.

It (Other OTC: ITGL - news) also said it is in final discussions to receive commitments from certain shareholders to raise up to a further $5m through debt securities, which will be used for working capital and contingency purposes.

Chairman Ian Holzberger said: "We have reached an advanced stage of Runruno's development and so having to raise additional funds for working capital purposes is frustrating but also unavoidable.

"The board gave great consideration as to the best way of structuring this fundraise and consider this to be the most attractive arrangement because it allows all qualifying shareholders to share pro-rata in the funding and ownership of the company via the open offer, which is important given how close the company is to first production." At 1115 BST, shares were down 15% at 3.50p.