Landore Resources Ltd (AIM:LND) shares dived 43% to 3.32p after it pulled a C$5 million (£3m) share issue, saying market conditions have led to "significant fund raising challenges" in the four weeks since it was announced, forcing it to postpone its proposed dual listing in Canada.
It said the challenges were particularly for the junior natural resource sector.
Plans to reduce costs and preserve cash resources as appropriate and is exploring alternative funding options to enable it to proceed with a drilling campaign on its flagship BAM Gold Project in Ontario.
The directors and officers of the company had stated an intention to invest a total of C$365,000 in the non-brokered offering, which was aimed at facilitating Landore's proposed dual listing on the TSX Venture Exchange in Canada.
It is a pre-condition of the dual listing, that the company is able to show a certain minimum working capital and financial resources at the time of listing.
As the company has decided to defer its fundraising efforts until there is a sustained improvement in market conditions, the board has also postponed the proposed dual listing, saying it will "revisit financing opportunities during Q1 2024".