Harvest Minerals raises £0.3m to accelerate Arapua development

(Sharecast News) - Harvest Minerals announced on Monday that it has raised £0.3m in gross proceeds through a placing of 100 million new ordinary shares at 0.3p each, as it seeked to accelerate its rare earths exploration activities at the Arapuá project in Brazil.

The AIM-traded organic fertiliser producer said the placing, conducted by broker Tavira Financial, also included the issue of one warrant per two placing shares, exercisable at 0.6p for two years from admission.

Harvest said the proceeds would be used to advance its rare earths drilling programme at Arapuá and to fund general working capital requirements.

Chairman Brian McMaster noted that recent positive results supported the decision to sole fund and accelerate the next phase of exploration.

"The positive results recently reported from Arapuá have given the company confidence to sole fund and accelerate the next drilling phase of rare earths exploration," McMaster said.

"In addition, the company has seen notable titanium dioxide intersections.

"These additional funds will now enable the company to expand and incorporate further studies on the titanium dioxide potential of Arapuá."

Admission of the new shares to trading on AIM was expected to take place at 0800 BST on 26 June.

Following the placing, the company's issued share capital would increase to 389,169,217 ordinary shares, all of which would carry voting rights.

At 1215 BST, shares in Harvest Minerals were down 16.32% at 0.38p.

Reporting by Josh White for Sharecast.com.