Amaroq Minerals Ltd. has announced its intention to conduct a placing and subscription of new common shares to raise gross proceeds of approximately £30.0 million (equivalent to approximately C$51.0 million or ISK5.2 billion). The net proceeds will be used to accelerate development and exploration activities. The fundraising will consist of a proposed placing of new Common Shares with new and existing institutional investors, a proposed placing of new depositary receipts representing new Common Shares with new and existing investors, and a proposed private placement of new Common Shares by certain existing institutional investors and a director of the Company. The net proceeds from the fundraising will be used to accelerate mining of the Target Block at the Company’s cornerstone Nalunaq gold project and other associated works to enable a smoother transition to nameplate capacity of 300 tonnes per day to the processing plant, installation of a flotation circuit and dry-stack tailings facility to increase recoveries, as well as provide funding to accelerate exploration during 2024 across the Company’s Vagar, Nanoq, and Gardaq JV licences.
Stifel Nicolaus Europe Limited is acting as sole bookrunner and broker on the UK Placing, while Landsbankinn hf. and Fossar fjárfestingarbanki hf. are acting as joint bookrunners on the Icelandic Placing. Landsbankinn has agreed to underwrite the Fundraising by up to £10 million, guaranteeing to the Company participation in the Fundraising in the maximum amount of £30 million. Allocations in the UK Placing are at the absolute discretion of Stifel, in consultation with the Company. The number of Fundraising Shares will be determined following completion of the Bookbuild. The UK Placing is conditional upon the Icelandic Placing not having been terminated prior to admission of the Fundraising Shares to trading on the AIM market of London Stock Exchange plc and the receipt of conditional approval from the TSX Venture Exchange for the listing of the Fundraising Shares.