Glencar rights issue to raise £4.5 million

Glencar Mining is to raise €5.7 million (£4

Glencar Mining is to raise €5.7 million (£4.5 million) net of expenses through a rights issue to fund additional working capital needs at its goldmine at Wassa, Ghana. The company intends to place 32.6 million shares at 12p sterling (19 cents) per share. The shares will be offered to existing shareholders on the basis of one new ordinary share for every two ordinary shares held at the close of business on June 26th. The rights issues is being arranged and fully underwritten by Davy Corporate Finance and Williams de Broe. The monies raised will also facilitate further exploration at Wassa and at Glencar's other exploration properties in Ghana, Uganda and in Ireland. The rights issues is to raise less than that proposed last January, although proportionately more of the money will go towards exploration, according to managing director Mr Hugh McCullough.