Polymetals Resources to Raise AU$35 Million to Fund Silver, Zinc Production; Shares Down 6%

MT Newswires Live

02-10

Polymetals Resources (ASX:POL) received firm commitments to raise AU$35 million through a single tranche placement of about 43.8 million shares at AU$0.80 apiece, the company said in a Monday filing with the Australian bourse.

The company said it now has a pro forma cash position of about AU$37 million.

The funding will be used to strengthen the company's balance sheet as it transitions towards first silver and zinc production at Endeavor mine in New South Wales in the second quarter, among other initiatives, added the filing.

The company will also undertake a share purchase plan to allow existing shareholders registered on Feb. 7 to purchase up to AU$30,000 worth of shares at $0.80 each, per the filing.

Company shares dropped more than 6% in recent Monday trade.

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