Metals Exploration Plc (LON:MTL) is to raise US$5mln by placing shares at 5p each with certain existing shareholders.
The shares fell 0.3p to 8.2p on the news, which was flagged on 15 July.
The company said it needed to raise fresh funds after tapping the market last year because of delays at its Runruno gold mine.
The group suspended milling at the site in the Philippines after feeding-in problems at the tail-end of June.
Immediate additional funding is needed now due to the mill suspension delaying expected revenue, debt restructuring discussions taking longer than expected, and a requirement by lenders to make a bi-annual interest payment against the current Runruno facility, the miner said.
"It is pleasing to have the processing circuits being commissioned and ramped up once again but it was unfortunate the issue with the mill occurred. We are confident this commissioning issue has now been resolved with the support of CITIC, the mill provider,” said Ian Holzberger, executive chairman of Metals Exploration.
“The project has been re-established on the commissioning and ramp-up schedule which was interrupted due to the mill downtime. All key operations in the processing plant are in commissioning with pleasing results being recorded. It is expected that the project will ramp up to design specifications within the next three month period,” he added.