AfriTin Mining Limited (LON:ATM), the tin miner, has raised £3.05mln through a placing and subscription at 2.1p.
Existing shareholders have applied for the majority of the shares, said AfriTin, and the money will complete debottlenecking capital projects for the Stage I plant at the Uis tin mine, feasibility studies for the Phase 1 expansion and working capital.
Mining operations at Uis resumed in June following the easing of coronavirus (COVID-19) lockdown measures in Namibia.
An internal review also identified staged modifications that could potentially increase the net present value to US$122mln, and the internal rate of return to 60%.
The placing price of 2.1p represents a discount of 25% to the price on 21 July.
Shares dropped 18% to 2.3p.