Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) fell over 21% on Monday following a £3.5mln share offer on the junior market.
Funds will be used to finalise plans for the Songwe Hill rare earths project in Malawi and to start work on a magnet recycling facility in Germany.
The funding round will issue shares a 12.5p apiece.
Mkango’s share price as of 10.40am February 13 was 12.94p with a market capitalisation of £36mln.