Alba Mineral Resources PLC's (AIM:ALBA) share price dropped 24% following the announcement that it is raising £750,000 via a dilutive issue of new stock.
It is selling 600 million freshly minted shares for 0.125p each. The funds will be used to speed up activities across the company's portfolio after recently obtaining ecological permits to proceed with the exploration of its primary gold target at the Clogau St David's Gold Mine in Wales.
Alba is also offering a broker option to allow existing shareholders and other investors to subscribe for up to £100,000 in total on the same terms as the placing.
In early trade, Alba shares were off 0.04p at 0.13p - albeit having jumped almost 50% higher on Tuesday morning following the permitting approvals news.