Shares in Rockfire Resources PLC (LSE:ROCK) jumped 16% after the explorer secured £2 million in fresh funding to accelerate development of its Molaoi zinc, silver, lead, and germanium project in Greece.
The placing was led by specialist mining investor ACAM, which contributed half the amount and will take a 16.3% stake in the enlarged company.
The new shares were priced at 0.1p each, a 17.5% premium to the previous closing price, and come with warrants allowing investors to double their exposure over a 24-month period.
Proceeds will fund drilling aimed at upgrading the existing resource to an “Indicated” category under the JORC code and establishing a maiden germanium resource, the only one of its kind in Europe.
CEO David Price said the backing from ACAM validates the potential of Molaoi, which already boasts a 1.1 million tonne zinc resource.
The company plans further drilling and metallurgical testing to refine mining and processing options.
The shares rose 0.013p to 0.096p.