Proactive Investors - Upland Resources Ltd (LON:UPL)shares started sharply higher on Monday as the explorer announced that cornerstone investors would provide a £1.25mln injection of capital into the company.
Investors committed to subscribe for 208.3mln new shares in the company at a premium price of 0.6p per share, Upland revealed in a statement.
Upland intends to use the funds to support its involvement in the ‘Upland Big Oil Ventures’ joint venture company along with its interests in the Sarawak project in Malaysia, whilst also supporting working capital.
"This strategic investment supports Upland's move to the second phase of our strategy,” said Upland chief executive Bolhassan Di.
“Block SK334 in Sarawak offers transformational potential for a company of our size, and we have preliminarily identified four main structural trends in the seismic interpretation work after correlation with surface geology, fieldwork data and synthetic aperture radar data.
“Further integration works with full tensor gravity data is currently ongoing to improve our understanding and confidence on the block prospectivity.
“We are expecting the coming months to be an exciting time for the company, and believe we are well placed to take advantage of the opportunities now available to us.”
Alongside the subscription shares, the participating investors will also receive share warrants, one for every two subscription shares, which will be exercisable at 1.2p per share for up to two years.
In London, Upland shares traded up to the subscription price of 0.6p in opening deals before easing. The share price was 0.55p, up 4.7%, by 9:00am.