Eastinco Mining & Exploration (LON:EM.P ) has now completed a funding round and received a total £760,730 which the company intends to use to advance the Kuaka mine site in Rwanda.

The mining firm confirmed on 2 June 2020 that shareholders had converted around 48m shares equivalent of warrants with a gross exercise consideration of around £720,000.

The group outlined in the same statement that investors exercising warrants had been offered new four year warrants with a 3p exercise price for each warrant exercised.

The management’s “Concert Party” including Charles Bray, Edlin Holdings, Mike Staten, Daniel Hogan, and Stephan Knoef have exercised warrants accounting for around one-third of the total contributed consideration of £238,583.

Following the conversion of 15,905,500 warrants the Concert party now holds 88,807,084 shares in the enlarged company, which represents 21.2% of the enlarged company.

Eastinco said it intends to supplement the new working capital to complete the wash plant at the Kuaka mine site and begin mining to eventually generate positive cash flows.

The capital will also reduce outstanding debt, payables to suppliers and company management, while the group’s parent company will refrain from paying any management salaries until the company is able to produce cash flows, this morning’s statement said.

"We are pleased to have closed this funding round and are proud of the support we have seen from our existing holders who were prepared to follow their money and exercise their warrants,” said Mike Staten, Executive Director of Eastinco.

“Rwanda reacted quickly and decisively to lockdown borders and operations in response to COVID-19, we are now seeing the roadmap for lockdown easing and a return to business for the country, this should allow us to progress the completion of the wash plant and larger scale production,” he commented.

Staten added that the group would update shareholders over the course of 2020 as it targets “significant milestones including the wash plant completion and cash flow from operations."

Follow News & Updates from Eastinco Mining & Exploration here: