Shares in Capital Metals PLC (AIM:CMET) fell by 42% to 1.2p after the mineral sands company confirmed a placement to raise £500,000.
Some 50mln ordinary shares will be issued at 1p per share, which represents a discount on yesterday’s close of 2.12p.
According to a statement, proceeds will be used for general working capital and to secure lifting of the suspension of its Industrial Mining Licences in Sri Lanka so that project development can resume.
"Today's placing is necessary to help secure the company's ability to continue its actions to resolve the licence issues with the Geological Survey and Mines Bureau (GSMB) in Sri Lanka and get the project development back on track,” said chairman Greg Martyr.