African Consolidated Resources to raise 1.9m pounds

AIM-listed resource and development company African Consolidated Resources has agreed a subscription of 54,330,200 new ordinary shares of 1p each in the company at a price of 3.50p per new ordinary share to raise gross proceeds of 1.9m pounds.

The subscription is not underwritten.

In addition, the company announced the issue of 1,379,200 new ordinary shares of 1p each in the company at 2p each pursuant to employment services rendered to the company.

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The group estimated that the net proceeds of the subscription would be sufficient to fund the company's near-term liabilities and progress towards the advancement of its key projects, particularly the Pickstone-Peerless Gold Project.

Commenting on the subscription, Roy Tucker, Chairman of African Consolidated Resources, said, "Today's subscription and Craig Hutton's recent appointment as Chief Executive marks a key transformation in ACR's [African Consolidated Resources] development from an exploration company to a mining company."

The new ordinary shares will rank 'pari passu' with existing ordinary shares of 1p each in the company.

Following admission, the total issued share capital of the company will be 656,958,630 ordinary shares, all of which have voting rights. The new ordinary shares will represent approximately 8.48% of the enlarged issued share capital of the company.

MF