Shares of Ironveld PLC (AIM:IRON), the AIM-listed mining development company, soared by 16% within the first 30 minutes of trading following the completion of a fundraiser that was completed at a premium to the prevailing price.
The company's largest shareholder, Tracarta Limited, has agreed to inject £450,000 into Ironveld by purchasing 162 million new ordinary shares at 0.278p per share - or 23.5% higher than the price on Tuesday.
In addition to Tracarta's investment, the company's broker, Turner Pope, has secured an additional £550,000.
Subject to shareholder approval, all investors in this fundraising round will also receive warrants to buy new shares at a price of 0.29p.
Following the completion of this fundraising, Tracarta's Dr John Wardle has assumed the role of executive chairman of Ironveld.
At 8.22 am, the stock was changing hands for 0.26p, up 0.037p.