LONDON (ShareCast) - (Sharecast News) - GreenRoc Strategic Materials announced on Monday that it has raised £0.735m through a placing and subscription, to support the development of its critical minerals projects in Greenland.
The AIM-traded firm said the fundraising included £0.5m from institutional investors, £0.165m from existing shareholders, £0.05m from its largest shareholder Alba Mineral Resources, and £0.0175m from company directors.

It issued the new shares at 1.3p each, representing a 31.57% discount to the prior day's closing price, with investors receiving one warrant for every two new shares, exercisable at 2p per share over two years.

The company said it would use the proceeds for general working capital and to advance key initiatives, including securing grant funding for the forward work programme at Amitsoq, progressing the company's recently submitted exploitation licence application, and funding the testing of non-fluoric acid purification techniques for graphite anode material.

Additionally, GreenRoc said it was planning to conduct a life-cycle analysis of carbon dioxide emissions associated with its planned graphite production and continue discussions with potential strategic and offtake partners.

"This fundraise allows us to move on with both the Amitsoq mine and our plans for the graphite anode materials plant," said chief executive officer Stefan Bernstein.

"In addition to some technical advancements, we will also engage with a LCA consultant to help us document the savings in carbon dioxide emissions associated with locating our AAM plant in the Nordic region.

"We will now work to exploit the various opportunities for public financing of parts of the work programme, building on the fact that the Amitsoq mine and the graphite anode materials plant have been granted formal 'project' status by the intergovernmental Mineral Security Partnership and we have applied to become a strategic project under the EU's Critical Raw Materials Act."

Bernstein said the company would strive to establish a "strong financial foundation" for GreenRoc to develop its capacity to produce graphite anode material for the European battery industry.

"I would like to thank the investors supporting this raise - in what remains challenging capital markets, we set out to raise a minimum of £0.5m and achieved a near 50% oversubscription, which is a strong endorsement of the huge potential upside associated with GreenRoc."

At 1239 GMT, shares in GreenRoc Strategic Minerals were down 15.79% at 1.6p.

Reporting by Josh White for Sharecast.com.

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