Vast Resources PLC (LON:VAST) has declined a second payment under a financing agreed earlier this year due to the potential dilution for shareholders.
The AIM-listed miner agreed a share and warrant deal worth £6mln with Crede Capital on 4 January to be paid in four tranches of £1.25mln.
Since then, though, shares in Vast have dropped substantially and subscription for the second tranche would result in Crede being interested in more than 25% of the shares.
The decision not to give consent has been taken in order to reduce further dilution to existing shareholders Vast said.
The arrangements for the third and fourth trances are still in place.
Vast directors said they intend to money due from the Crede second tranche.
Initial discussions indicate that the terms of this funding will be on more favourable terms and on a basis that will not conflict with the terms of the subscription agreement, it said.