Anglesey Mining PLC (AIM:AYM) announced a new £2 million conditional equity financing facility, with Alumni Capital, with the proposed funding requiring a 20-into-1 share consolidation.
It will be conditional upon securing shareholder approval, and Anglesey Mining's board said that failure to approve the proposal would leave limited funding options and create material uncertainty over the company’s ability to continue as a going concern.
The company said the financing and existing cash resources will be used to advance development of the company’s Parys Mountain project in North Wales and provide working capital.
A general meeting has been scheduled for 23 October to approve the proposals.
In London, Anglesey Mining shares were down 26% changing hands at 0.25p.