Geo raises £1.25m to fund drilling and exploration

(Sharecast News) - Geo Exploration said on Tuesday that it has raised £1.25m before expenses through a heavily discounted placing to fund drilling and exploration activity across its portfolio, including projects in Australia and Namibia. The AIM-traded explorer said it placed 694,444,444 new ordinary shares at 0.18p each, representing a 21.7% discount to the closing bid price of 0.23p on 15 December.

It said the placing would increase its issued share capital to 5.60 billion shares following admission, which was expected on 22 December.

Geo said the proceeds would be used to fund exploration work at the Gorge Project, advance the next phase of drilling at the Juno Project anticipated in early 2026, support potential farm-out and related transaction activity at PEL 94 in Namibia, and provide general working capital.

The company said the fundraise followed the successful completion of its maiden drilling programme at Juno and encouraging recent exploration progress at the Gorge Project.

"We are very encouraged by the strong support from investors in this fundraise, which reflects growing confidence in the progress the company has made across its portfolio and the opportunity ahead," said chief financial officer Hamza Choudhry.

He added that Geo was entering "an exciting phase at the Juno Project with results pending from the labs, alongside increasingly encouraging exploration signals at the Gorge Project, including high-grade rock chips and the recovery of large gold nuggets."

Choudhry also pointed to increased industry interest in Namibia's Walvis Basin, noting that recent offshore developments and future drilling plans announced by Chevron had sharpened focus on the company's PEL 94 licence.

"With a strengthened balance sheet, GEO is well positioned to continue advancing its assets in a disciplined manner, grow the business through technical progress across multiple projects, and pursue opportunities that we believe can deliver long-term value for shareholders," he said.

At 1453 GMT, shares in Geo Exploration were down 23.75% at 0.18p.

Reporting by Josh White for Sharecast.com.