Shares in Contango Holdings (LSE:CGO), the London-listed natural resources company, climbed 8% to 0.68 pence in early trading on Friday.
The move followed confirmation that the company had received £5 million from a share subscription by two strategic investors.
Huo Investments and Pacific Goal Investments Limited subscribed for 450,450,451 new ordinary shares at 1.11 pence each, a premium of about 80% to Thursday's closing price.
The two investors, treated as a concert party, will together hold 50.1% of Contango's enlarged share capital.
Huo Investments already held 154,750,000 shares in the company, while Pacific Goal Investments had no prior stake.
Proceeds will go towards settling outstanding loans and providing general working capital, as set out in a circular published in July.
Chief executive Danny dos Santos said the funds would allow all outstanding liabilities to be cleared.
He added that a shift to a royalty model had reduced running costs and that dividend payments could begin in 2027.
Dos Santos also pointed to a minimum $2 million (about £1.6 million) dividend, referencing the equivalent of two million US dollars, expected before the end of the year.
