Shares in Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) fell 18% to 0.62p despite reporting high-grade gold assay results from its Crofton project in Western Australia, as investors reacted to dilution from a £1.85 million placing announced alongside the update.
The stock has powered up 373% over the past 12 months.
The company confirmed rock chip samples from its maiden site visit at Crofton returned gold grades up to 162.35 grams per tonne (g/t), with 15 samples exceeding 1 g/t.
These results support historical data showing gold grades as high as 253 g/t, and further assay results, including silver and multi-element samples, are expected in the coming weeks.
Cloudbreak said it now holds 100% of Crofton, which covers the Boodalyerrie Mining Centre, a historic producer with recorded grades averaging 150 g/t. The site is marked by large quartz veins and visible surface mineralisation over a 1km x 4km area.
Managing director Tom Evans described Crofton as “incredibly exciting” and a priority for 2026, with regional soil sampling and mapping planned to begin after the Australian summer.
However, investor focus turned to the equity raise. The company placed 330.4 million new shares at 0.56p, a discount to recent trading levels.
Warrants attached to the placing are exercisable at a 50% premium. Proceeds will be used to fund further exploration and working capital.
The placing increases Cloudbreak’s total share count to 1.85 billion.