Amaroq Minerals Ltd. has successfully completed its oversubscribed fundraising, raising approximately £44 million (C$75 million, ISK 7.6 billion) through the placement of 62,724,758 new common shares at a price of 74 pence (C$1.25, ISK 127) per share. The net proceeds, exceeding the initial target, will be utilized to advance exploration at the Vagar and Nanoq licenses and provide additional capital injection into the Gardaq joint venture. The fundraising shares represent about 19% of the company's enlarged share capital after the completion of the fundraising.
The placing price of 74 pence per share represents a 5.7% premium to the closing price on 9 February 2024 on AIM. Stifel Nicolaus Europe Limited acted as the sole bookrunner and broker on the UK Placing, while Landsbankinn hf. and Fossar Investment Bank hf. acted as joint bookrunners on the Icelandic Placing, with Landsbankinn also acting as the underwriter.
Eldur Olafsson, CEO of Amaroq, expressed gratitude to the participating shareholders and highlighted the strong support received, particularly from Scandinavian pension funds. He emphasized that the funds raised will accelerate mining at Nalunaq and continue investment in exploration portfolios in South Greenland, expressing confidence in delivering on objectives at the Nalunaq Mine and enhancing potential value for shareholders and local communities within Greenland.
The company also announced the application for admission of the fundraising shares to trading on AIM, Nasdaq Iceland's main market, and the TSX-V, with the expectation that dealings in the fundraising shares will commence on 23 February 2024. Following the admission of the Icelandic Placing Shares, the UK Placing Shares, and the Canadian Subscription Shares, Amaroq's total issued share capital will consist of 326,455,446 common shares of no par value.