Bluebird Mining Ventures (LSE:BMV) shares traded sharply lower on Thursday, accounting for a new £627,450 equity fundraise and a capital reorganisation.
The company said the measures are intended to stabilise the balance sheet and support its revised gold-focused streaming and treasury strategy.
Bluebird said the fundraise involves the issue of 418.3 million shares priced at 0.15p per share. Some £500,000 is being raised through a placing via CMC Markets, and the balance will come from subscriptions by high net worth investors.
“This fundraise and the capital reorganisation will give BMV a stronger foundation to advance its growth strategy," said chief executive Sath Ganesarajah.
Bluebird said the capital reorganisation also includes the consolidation of legacy loans totalling £200,000 and the proposed cancellation of deep-discount warrants.
Ganesarajah added: "with legacy instruments being addressed, near-term liabilities stabilised and a structured funding framework being implemented, the company is progressing towards execution of its gold-streaming and regulated treasury strategy."
In London, Bluebird shares fell 28.9% changing hands at 0.17p.