AIM-listed African Consolidated Resources (ACR) has agreed to a subscription of 54.33-million of its new ordinary shares to raise gross proceeds of $3 million, it was announced late on Tuesday.

According to The New Zimbabwe, the Southern African-focused resource and development company’s directors estimated that the net proceeds of the subscription would be sufficient to fund its near-term liabilities and the advancement of its key projects, particularly the Pickstone-Peerless gold mine, in Zimbabwe.

The company said it continued to explore all sources of funding, as further funding was anticipated to be required in the second quarter of 2013 to enable it to continue operating as a going concern and to develop the Pickstone-Peerless project, together with its portfolio of high-impact assets.

Last week, ACR announced that it had appointed Craig Hutton as its new chief executive with immediate effect to replace Andrew Cranswick.

“Today’s subscription and Hutton’s recent appointment as chief executive marks a key transformation in ACR’s development from an exploration company to a mining company,” chairperson Roy Tucker said.

He added that Hutton’s initial focus would be on the advancement of the Pickstone-Peerless project, as it moved towards a production phase targeting 15 000 oz/y to 20 000 oz/y of gold in the near term.

“Pickstone is an important development for Zimbabwe and it requires full involvement from all stakeholders. [Hutton], with the support of recently announced management changes in Zimbabwe, will be tasked with ensuring that all stakeholders benefit from this emerging opportunity,” Tucker noted.