Clontarf Energy (AIM:CLON) shares dropped 12% lower in early trade on Monday following news of a £1.3mln equity placing comprising two billion shares priced at 0.065p per share representing approximately 46% of the company's issued share capital.
Clontarf did manage to rebound slightly as the morning session progressed, bringing its shares back to 0.08p, down 9.1%, after hitting an intraday low of 0.068p. Admission of the new shares is expected to become effective on or around January 19, 2023.
The net proceeds of the placing will be used to advance Clontarf's lithium projects in Bolivia, and petroleum projects in Ghana, Australia, and elsewhere.
Clontarf Energy also said it has advanced its discussions with the Bolivian and Ghanaian authorities in recent weeks.
In a statement, Clontarf chairman, David Horgan, commented: "Clontarf Energy's team has 34 years Bolivian operating experience. Local sensitivities must be respected, and large-scale developments requires clarifying the Bolivian Lithium Law to confirm the legal basis for Joint Ventures with the authorities."