(Alliance News) - African Pioneer PLC on Monday said it has raised GBP790,000 to facilitate drilling at Ongombo and exploration in the Kalahari Cu belt.

The Namibia-focused exploration and development company has raised GBP790,000, through the issue of 35.1 million shares priced at 2.25 pence each.

The fundraising price represents a discount of 22% to the closing price of 2.9p on Friday, being the last business day before the announcement.

African Pioneer's shares were down 12% to 2.55p on Monday morning.

The fundraising comprises a placing of 18.4 million shares raising GBP415,000 via the company's broker Novum Securities Ltd, as well as a share subscription of 16.7 million shares raising GBP375,000.

As part of the fundraise Chair Colin Bird and Commercial Director Christian Cordier subscribed to 2.2 million shares, worth GBP50,000. Bird is now interested in 23.3 million shares, a 10.21% stake, whilst Cordier is interested in 17.2 million shares, a 7.55% stake.

African Pioneer is also issuing 1.2 million shares to settle GBP27,500 of accrued consultancy fees.

Bird said: "This fundraise will be generally directed towards our predevelopment activities on the Ongombo mine in Namibia. Our previous data compilation, modelling and own drilling have advanced the project into a very favourable development situation. We are confident that we can increase the overall value of the project by some further general drilling aimed at further copper additions, but more importantly the east shoot can be brought earlier into the mine plan by further judicious drilling to define both overall quantum and gold content, which was not defined in the past."

The fundraise shares represent about 16% of the company's enlarged issued share capital.

By Sophie Rose, Alliance News reporter

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