Rare earths and gold explorer Galileo Resources (LON:GLR) announced plans to raise £300,000 via a placing of shares for working capital and so it can kick off exploration for copper and gold in Nevada.
The cash call, which will see 10mln shares issued at 3p each, is subject to the approval of shareholders of the firm's capital reorganisation plans announced yesterday.
The firm proposes to subdivide around 114.5mln shares into one share of 0.1 pence and one deferred share of 4.9 pence each and a general meeting will be held on February 13 this year, the firm said.
The reason behind the move is so it can create a differential between the nominal value of the firm's shares and their market price to allow for future share issues
On Wednesday, Galileo also announced the potential sale of its stake in the Glenover prospect in South Africa to partner Fer-Min-Ore Proprietary for US$4mln.
Galileo chairman Colin Bird said the Glenover phosphate project had now been advanced with Fer-Min-Ore to the point where significant new funds together with specific industry expertise were required.
Galileo shares were unchanged at 3.625p each.