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12 Feb, 2024 12:12

Amaroq kicks off fundraising of up to £30m

dl amaroq minerals aim greenland gold mineral mining miner aex gold logo
Amaroq MineralsSharecast graphic / Josh White

Southern Greenland-focussed gold and energy miner Amaroq Minerals reaffirmed its plans to conduct a placing and subscription to raise £30m on Monday, to expedite its exploration and development activities.

The AIM-traded firm said the fundraising would be priced at 74p per new share.

It said the fundraising plan included three key components, with the first being a proposed placing of new common shares with new and existing institutional investors in a UK placing.

The second part would be a proposed placing of new depositary receipts representing new common shares with new and existing investors in an Icelandic placing, and the third was a proposed private placing of new common shares by certain existing institutional investors and a company director at the placing price in a Canadian subscription.

Amaroq said the net proceeds from the initiative would be allocated towards accelerating mining activities at the Target Block within the Nalunaq gold project, enhancing processing capabilities, and funding exploration efforts across various licences throughout 2024.

Stifel Nicolaus Europe was serving as the sole bookrunner and broker on the UK placing, while Landsbankinn and Fossar were acting as joint bookrunners on the Icelandic placing.

Additionally, Landsbankinn had agreed to underwrite the fundraising by up to £10m.

The UK placing was being executed through an accelerated bookbuild process, expected to close by 1800 GMT on 12 February.

Amaroq said the UK placing was contingent on factors including the Icelandic placing not being terminated before admission of the Fundraising shares to trading on AIM, and conditional approval from the TSX Venture Exchange.

Allocations in both the UK and Icelandic placings would be at the discretion of the respective parties involved.

“We are investing to increase recoveries at Nalunaq and to accelerate our exploration plans in our strategic mineral acreage across Southern Greenland, which has become one of the last frontiers for Western governments and companies to secure scaled supply of strategic minerals so desperately needed for the energy transition,” said chief executive officer Eldur Olafsson.

“By further de-risking the development of Nalunaq whilst also advancing exploration in both gold and strategic minerals, we believe we can deliver value for shareholders.

“It is a very exciting time to be the largest acreage holder in Southern Greenland.”

At 1149 GMT, shares in Amaroq Minerals were up 4.83% at 73.38p.

Reporting by Josh White for Sharecast.com.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.