Alba Mineral Resources PLC (AIM:ALBA) saw its shares fall nearly 9% in early trading on Monday after announcing a £550,000 fundraising to support the acquisition of a majority stake in the Motzfeldt Critical Metals project in southern Greenland.
The asset holds significant resources of niobium, tantalum, zirconium, and rare earth elements, key materials for clean energy and advanced technologies.
Motzfeldt, one of Greenland’s largest critical raw material deposits, complements Alba’s existing portfolio including projects in Sweden and Wales.
The £550,000 raised through a share placing will fund work at Motzfeldt, Alba’s Finnsbo project, and bulk sampling at its Clogau gold mine.
Alba’s acquisition terms include cash and shares totalling nearly £1 million, with a joint venture planned with the current project owners.
The company plans to leverage government funding for critical minerals strategies in the UK, EU, and US to advance exploration while managing dilution.
Alba’s experienced Greenland team aims to progress metallurgical studies and a scoping study in the coming months.
The shares fell 0.002p to 0.02p, though the level was still well above the notional ex-rights price of the shares.