John Teeling's mineral exploration firm Arkle has raised £600,000 (€660,000) to seek gold and zinc in Donegal, Limerick and Wicklow.
The Dublin-based firm said it was oversubscribed for its placing yesterday of 75 million new shares at 0.8 pence each. They will begin to be traded on the AIM exchange in London on September 7.
"The placing will fully fund the company's planned sampling and drilling campaigns through to the end of 2021 on its gold properties at Mine River [in Wicklow] and Donegal," Arkle said in an after-market statement. "In addition, the funds will be used for the anticipated 2021 drilling programme for zinc in Limerick at the Stonepark joint venture and in surrounding areas."
Arkle shares closed yesterday at 0.92 pence, 15pc higher than the placing price.
The offering will boost Arkle's total share issuance by 25pc to 291 million. It includes warrants exercisable for further Arkle shares at 1.2 pence each.
In the event of full take-up of those warrants, this would generate £900,000 to keep Arkle funded "well into 2022", it said.
Mr Teeling, a whiskey and mining entrepreneur who owns the Great Northern Distillery, said the firm already had staff "working at both Mine River and Donegal targeting gold, while drilling will commence this month on the Stonepark zinc project. Follow-up drilling is anticipated on all three projects".
He stepped in as acting chief executive last month following the surprise departure of previous CEO Patrick Cullen.
In June, Arkle reported 2019 net losses of €313,860 and net liabilities of €182,501 and expressed concern about its "ability to continue as a going concern".
Technical advisor Gavin Berkenhegerhas has assumed oversight of both Arkle gold projects, Mine River in Wicklow and Meeneragh Glentogher on Donegal's Inishowen peninsula. Mr Teeling and finance director Jim Finn have taken charge of Arkle's zinc projects.