GCM Resources (AIM:GCM) shares were lower on Friday, accounting for a new £1 million equity raise through a placing.
The AIM-traded will issue 16.6 million new ordinary shares priced at 6 pence each, a discount of about 20%.
“The net proceeds from the placing are intended to be used by the company for working capital purposes,” the company said, adding the funds will be allocated to overheads, legal and advisory costs and general administration.
GCM said it continues work to progress the Phulbari Coal and Power Project in north-west Bangladesh, which remains subject to securing approvals from the Government of Bangladesh.
In London, GCM shares fell 19% changing hands at 6.5p.