GreenRoc Mining PLC (AIM:GROC) shares pulled lower as the company reported a share placing for £460,786 which it said will fund the completion of a feasibility study for a graphite processing plant in Greenland.
It is selling 18.43 million shares priced at 2.5p, compared to Tuesday’s closing price of 3.35p.
The injection of capital is also expected to support GreenRoc’s efforts to complete social impact assessment studies for the company's Amitsoq project, also in Greenland, and its commercial negotiations with potential offtake and financial partners.
"It is hugely satisfying that we now have the funding in place to complete the full feasibility study of the graphite anode processing plant,” chief executive Stefan Bernstein said in a statement.
“It will provide us with a comprehensive business case and clear path to building both the pilot scale and full production plant.
“With this, and our own stream of high-quality feedstock from our Amitsoq graphite mine in Greenland, GreenRoc aims to become one of only a handful of upcoming vertically integrated graphite anode producers globally and a strategically important graphite anode supplier to the European electric vehicle battery market.”
Bernstein added: “I would like to thank our group of supportive investors who continue to show their confidence in what we are building together. We will work hard to greatly enhance the value of your investments."
Directors including Bernstein and non-executive chair George Frangeskides participated in the placing, subscribing for £5,000 of shares each.
In London, GreenRoc’s micro-cap shares traded down 0.78p or 23.15% to 2.57p.