Conroy Gold raises capital for gold mine development
Published 22/12/2015 | 02:30
Irish exploration company Conroy Gold announced yesterday that it has raised just over half a million euro through a share placing and debt conversion.
It raised £375,000 (€517,250) through the issue of 769,230 ordinary shares of €0.001 and by way of debt capitalisation at a price of 32.50 pence per share.
The new shares have been subscribed by company chairman Professor Richard Conroy and Patrick O'Sullivan, an existing shareholder. Mr Conroy now holds 24.4pc of the issued share capital.
The company said the funds will be used for "general working capital purposes" and for the funding of the company's ongoing programme at its Clontibret and Clay Lake gold targets.
Last month it made a loss of €315,314 in the year to the end of May, compared with the €380,305 loss in the prior year, as operating expenses fell.
The firm said that recent drilling results from the Clontibret, Co Monaghan, site have proved further evidence of continuity of gold mineralisation at depth.
The business aims to develop the country's first commercial gold mine at its site at the historic Clontibret site.
Last year Conroy Gold said that it will spend €32m developing mining at the site, and expects to get the full costs back in just the first two years of production. Mining could last for five years.
The first phase of development will involve pit mining with mine works expected in phase two.
Mr Conroy has previously said that the mine could yield over €150m worth of gold over its lifetime.
Gold found in the Republic is officially owned by the State and extracted under licence.