Vast Resources PLC (AIM:VAST) shares fell 10% to 0.37p after it revealed it had raised £1.7mln through a placing.
The placing of 486mln shares was priced at 0.35p, with the shares having closed at 0.41p and been above 0.6p for much of the past six months.
Vast said it will use the cash for working capital and for its current "corporate obligations".
It said this included "bridging any unforeseen operational related costs" as well funding further expansion capital and the ongoing drilling and mine development of its Baita Plai polymetallic mine in Romania.
The company also said it continues to liaise over the handover of the historic parcel of diamonds currently held in the Reserve Bank of Zimbabwe.
"The placing is necessary to give the company liquidity until the process has been finalised and implemented and the sale of the parcel can proceed."
It is also still in discussions with Mercuria Energy Trading and Alpha Investments about a further extension on the repayment of debt totalling approximately US$8.4mln which was repayable in full on 30 June 2023.