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(Sharecast News) - Conroy Gold announced on Thursday that it has raised 0.24m through the issue of unsecured convertible loan notes to support exploration work at its Clontibret gold deposit in Ireland, and to fund ongoing discussions with potential strategic and financial partners.
The AIM-traded explorer said the notes, which were subscribed by a mix of new and existing investors, would be convertible at 10p each, representing a 277% premium to the company's last closing price of 2.65p.
It said the fundraising structure was chosen to avoid immediate shareholder dilution, given the board's view that the current share price significantly undervalued the business.
The proceeds would fund geological work including drill core re-logging, 3D modelling, and follow-up antimony-related exploration across the Clontibret resource, which hosts a 517,000-ounce gold resource.
Company chairman John Sherman subscribed 40,000 of the loan notes, while major shareholder Philip Hannigan, via Knockeader Investments, subscribed 50,000.
Conroy Gold said its broader 'Discs of Gold' project spans two gold-bearing trends over 90km and includes several additional targets.
The company said it was also evaluating a performance-linked structure to address board-level payables tied to future production milestones and shareholder returns.
"The board is pleased to announce this fundraising, and particularly welcomes the willingness of both new investors and existing shareholders to invest in the company at a clear premium to our share's current market price," said chairman John Sherman.
"The funding will support the continuing re-logging and 3D geological modelling programme for Clontibret, an effort that is delivering insights in respect to controls for high grade gold mineralisation and the antimony potential in the deposit.
"These learnings will inform our choices for the next cycle of major investment in the 'Discs of Gold' project, the structure and funding of which remains under discussion with potential strategic and financial partners."
At 1143 BST, shares in Conroy Gold and Natural Resources were up 19.7% at 3.17p.
Reporting by Josh White for Sharecast.com.