Vast Resources PLC (AIM:VAST) shares dropped sharply in Thursday's early trade, accounting for dilution and discount, as the mining sector junior raised £2 million through a share placing.
Some 1.1 billion new shares are being issued in the placing, each priced at 0.18p, versus Wednesday's closing price of 0.26p.
Proceeds will support debt repayment and operational work across its portfolio, Vast said.
Specifically, it said the new money will repay US$1 million owed to Alpha and Mercuria, to secure loan extensions, and, in terms of operations, will support due diligence work ahead of a restart at the Baita Plai and Manaila mines in Romania.
The placing was arranged by broker Axis Capital Markets, and the new shares will be issued two tranches, which once complete will take the number of shares in issue to around 5 billion.
In London, Vast shares were down 23% changing hands at 0.2p, and in opening exchanges reached 0.18p.