Travel group Minoan is raising £525,000 through a share placing to support development of the firm.

The amount raised includes £100,000 from directors and comes after the sale of Glasgow-based Stewart Travel Group in October.

Proceeds from the share placing will be used to provide general working capital to support the development of the group, in particular its resort project in Crete, and to settle certain existing liabilities, the company said.

Additionally, Minoan has agreed to settle liabilities totalling £250,000 by the issue of a further 10 million ordinary shares at a price of 2.50 pence per share.

The group is concentrating on long-term plans for a €250 million resort with multiple hotels on a 6,000-acre site on the Greek island.

The project aims to include a number of small to medium sized hotels of “extremely high standards”, both in terms of the service offered and environmental credentials, according to the company.

MoreMinoan agrees £6.5m Stewart Travel sale