Shares in Metals One PLC (AIM:MET1) fell by 24% following a large issue of new shares linked to exercised warrants, a drop that appears overdone given the company’s latest news.
The share price slide came after the company confirmed it had executed a binding agreement to acquire Mjolner Minerals, owner of the Lillefjellklumpen Project in Norway.
The €90,000 deal, which still needs regulatory sign-off, adds a promising licence area rich in platinum group metals, gold, nickel, and copper.
Despite the positive acquisition news, the equity issue seemed to niggle the market makers in charge of setting the Metal One price.
In all, just under 18 million new shares will be issued as a result of warrants being exercised. To the casual observer, the sharp decline seems disproportionate to the underlying business developments.
The stock dropped 6.02p to 19.48p.