Lexington Gold Raises £530K to Advance Gold Projects
Why we think this is good
The equity raise by Lexington Gold is a positive development, as the company has been able to secure £530,000 in funding at the current market price without needing to offer a significant discount to investors. The funds will be used to support the company's ongoing exploration and development activities, which could lead to future growth and value creation. While there is some dilution for existing shareholders, the impact is relatively modest at around 3.8% of the enlarged share capital. Overall, the raise appears to be a well-executed growth capital initiative rather than a last resort funding measure.
Key Points
- Lexington Gold raises £530,000 through the issue of 15,588,240 new common shares at 3.4 pence per share
- Funds will be used to advance exploration and development activities across the company's gold projects in South Africa and the USA
- Raise conducted at the current market price, with no discount, suggesting strong investor appetite
Summary
Lexington Gold (AIM: LEX) has raised £530,000 through the issue of 15,588,240 new common shares at 3.4 pence per share, representing approximately 3.8% of the company's enlarged share capital. The net proceeds will be used to support ongoing exploration activities and permitting across Lexington's South African and USA gold projects, as well as activities related to the Jelani Resources joint venture and potential new joint venture at the Ventersburg project. The raise was conducted at the current market price, indicating strong investor appetite for the company's shares.