Ferrum Crescent Limited (LON:FCR) said today that it has withdrawn the general meeting resolution seeking shareholder approval to raise up to A$2.7mln by way of a private placement.
In a statement, the AIM-listed lead-zinc exploration company said that, following on from the resignation of its executive chairman, Justin Tooth - announced on September 26 - its board is in the process of a comprehensive operational review.
READ: Ferrum Crescent's executive chairman resigns, no new CEO appointment in order to reduce costs
Ferrum Crescent added that, from initial work completed, the board believes that it is possible to pursue a strategy to build value at its Toral lead zinc asset for a cost lower than originally planned.
Therefore, it said, the full A$2.7mln which the board originally envisaged would be required to be raised in a placing, may not be required.
The group said the results of the operational review will be announced in due course.
In reaction, Ferrum Crescent shares leapt 70% higher, up 0.03p to 0.07p.
READ: Ferrum Crescent tops up funds after encouraging Toral grades
When announcing Tooth’s departure last month, Ferrum Crescent had said it is not intending to appoint a new full-time CEO in order to reduce costs.
The firm said Grant Button, currently a non-executive director of the group and its company secretary, residing in Australia, would assume the role of non-executive chairman.
It added that Laurence Read, previously a non-executive director, residing in the UK would become an executive director and work alongside the company's geological team and consultants.