Forgent (AIM: FORG) shares fell 26% to 0.017p after the self-described technology-led energy transition company announced the acquisition of a 51% stake in the Peak Hills gold-copper exploration project in Western Australia and a placing to raise £1.3 million at a 35% discount to the prevailing market price.
The consideration for the Peak Hills stake totals $1.18 million, satisfied through $206,060 in cash and the remainder through the issue of approximately 4.81 billion new shares at the placing price of 0.015p.
Peak Hills covers approximately 163 square kilometres across five tenements located around 80 kilometres north of Meekatharra, and holds historic drill results including intersections of 2 metres at 21.9 grams per tonne gold and 33 metres at 0.28% copper.
Forgent retains an option over the remaining 48% of the project, extended for a further five months.
Proceeds from the placing will fund the cash element of the acquisition, cover running costs of the company's gasification business and provide general working capital.
Both the acquisition and the placing are conditional on shareholder approval at an extraordinary general meeting to be convened shortly.