LONDON (ShareCast) - (Sharecast News) - Amaroq Minerals announced on Thursday that it has raised £45m in an oversubscribed share placing, to fund the expansion of its mining operations in Greenland.
The AIM-traded miner placed nearly 53 million new shares at 85p apiece, representing about 11.7% of its enlarged share capital.

It said the offer drew strong demand, with around 90% of the allocation taken up by institutional investors from the UK, the US, and continental Europe.

Proceeds from the placing would support ongoing commissioning and production expansion at the company's flagship Nalunaq gold project.

Funds would also be used to complete technical studies for further development at Nalunaq, advance a new mineral hub in West Greenland, and accelerate exploration across its wider asset base.

Additional liquidity would be directed towards strengthening the balance sheet and supporting working capital needs.

The new shares were expected to begin trading on AIM, the TSX-V and the Icelandic Exchange on 30 June.

"We are pleased to announce the results of this successful, significantly oversubscribed fundraise, which received considerable interest from a broad spectrum of investors around the world," said chief executive officer Eldur Olafsson.

"I would like to welcome new investors to Amaroq and to thank existing shareholders for their strong support.

"With the clear backing from the market for our strategy, we remain focused on unlocking Greenland's significant resource potential and look forward to updating shareholders on our operational progress at Nalunaq, our newly established West Greenland Hub and across the wider portfolio."

At 1220 BST, shares in Amaroq Minerals were down 0.17% at 86.35p.

Reporting by Josh White for Sharecast.com.

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