In a case of good news masquerading as quite the opposite, shares in Cadence Minerals PLC (AIM:KDNC) fell 38% after it announced a deal to acquire stakes in tungsten, antimony, and gold exploration projects in Spain and Portugal.
The undoubted cause for the negative reaction was the fact that this deal will be funded by £1 million placing of new shares at 1.5p - a fairly steep discount to Monday's close of 2.76p.
The new investment will be used to advance exploration at the Pompeya Project in Spain, covering 470 square kilometres of historic mine workings, and the Sarzedas Project in Portugal, containing old antimony, tungsten, and gold deposits.
While high-grade rock and grab samples have been identified, limited prior exploration and the early-stage nature of the projects appear to have weighed on investor sentiment.
In early trading, the stock was changing hands for 1.72p, down 1.04p.