The Irish-based resource company said it completed a restructuring in relation to €3.3m owed to directors and former directors, which included €680,000 being written off, with the rest being deferred.
About €2m was raised by selling new shares to selected investors, at a price of 10pc each. Conroy Gold says the round was over-subscribed. An extra €0.5m was brought in by investors using warrants to buy new shares.
The company says the first phase of a new drilling programme began at Clontibret, Co Monaghan, last November, covering about 2,000 metres, after gold and antimony were discovered there during an earlier relogging project.
Net assets of the group now stand at €22.4m. The agreement by directors to write off 20pc of what was owed to them reduced intangible assets by €286,083.
John Sherman, its chairman, said the repair of the balance sheet is allowing the company to advance projects purposefully.
Commenting on work in relation to the Clontibret gold deposit, he said the first phase is aimed at improving the understanding of the system and assessing the potential for higher-grade mineralisation at depth, in order to expand the deposit.
The company’s target area in Monaghan contains a currently defined 517,000-ounce gold resource, at two grams of gold per tonne of rock. Conroy Gold has identified a further seven targets in its licence area, with Clay Lake and Creenkill being of particular interest.
Richard Conroy, founder of Conroy Gold. Photo: Mac Innes Photography
“The company expects initial results from the first round of drill holes in the second half of the first-calendar quarter, which will yield information on the Clontibret deposit’s resource potential to expand in size at depth, as well as on the potential for antimony to contribute to project economics,” Mr Sherman said.
“Once the drilling of the first two holes is complete, the company intends to progress to drill the remaining holes in the first phase programme at Clontibret.”
Conroy Gold was established in 1995 by the late Professor Richard Conroy, initially to search for deposits in Finland as well as Northern Ireland. It found deposits at two locations in Armagh in 2016.
The company stopped trading on the Irish stock exchange the following year, but retained a listing on the Aim market in London.
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