Amaroq Minerals, which mines for gold in Greenland, has secured international backing in an oversubscribed fundraising round.
Greenland and its mining sector are attracting investors following a consistent push from US president Donald Trump to take control of the self-ruling territory, which is under the Kingdom of Denmark.
Amaroq conditionally placed about 53-million new common shares at 85 pence apiece, raising about £45-million ($61-million). About 90% of the funds came from a broad range of institutional investors from the UK, the US and mainland Europe, Amaroq said.
The Toronto-based company plans to use the money to expand production at its Nalunaq gold project in south Greenland, advance technical studies, develop a new operations hub in the western part of the island and intensify exploration efforts. The new shares will account for 11.7% of the company’s enlarged capital. Amaroq is listed in Toronto, London and Reykjavik.
EIFO, Denmark’s state-backed export and investment fund, was among investors in Amaroq’s funding round, raising its stake in the miner with a 100-million-krone ($15.4-million) pledge, miningweekly.com reported.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
