Shares in First Tin PLC (LSE:1SN, XETRA:1SN) fell 13% to 7.45p after the company announced a £6.3 million equity raise to fund development work across its tin projects in Australia and Germany.
The subscription, arranged by Arlington Group, will see 90 million new shares issued at 7p each. The company said most of the proceeds will be channelled into its Taronga project in New South Wales, where it is finalising an updated Definitive Feasibility Study.
That includes incorporating results from recent drilling to update the resource estimate, ongoing mineral processing testwork and early engineering work on core equipment.
Funds will also support preparatory groundwork, including road upgrades, initial dam construction, borefield establishment and detailed design work for the mine’s camp and water systems.
Studies related to biodiversity offsets are also being advanced.
A smaller portion of the capital will go to the Tellerhäuser project in Germany, mainly for permitting activities and fieldwork on nearby exploration licences at Gottesberg and Auersberg.
Bill Scotting, chief executive, said the raise would help the company advance “high-quality, low-capex tin projects in stable jurisdictions”, adding that tin remained a vital material in energy transition technologies.