Panther Metals PLC (LSE:PALM) said it completed a conditional placing of 22.96mln shares to raise gross proceeds of almost £1.15mln.
The net proceeds will mainly be used to fund exploration drilling work in Canada with the primary focus on drilling at the Obonga multi-commodity project where it was granted exploration permits last month.
READ: Panther Metals gets permits for 'audacious' drilling campaign in Ontario's Obonga belt
The placing was priced at 5.5p per share, a 12% discount on the company’s closing share price yesterday, and the new shares will represent about 24.4% of the company's enlarged share capital following the placing.
Each share will also be issued with one warrant, lasting 36 months, enabling the holder to subscribe for one new share at 8.5p.
"In a challenging market explorers must face tough choices; at Panther Metals we have studiously built the business during a time of unprecedented upheaval,” said chief executive Darren Hazelwood.
“We now sit at a pivot point with multiple permitted drill-ready targets, any one of which could transform the company and propel us onto the next level.
“In committing to this financing, the board was left with three options: raise to 'keep the lights on'; raise to drill a single target that would likely see us quickly returning to the market; or raise to embark on one of the most audacious, cost effective, discovery drilling campaigns ever conducted by a Canada-focussed London-listed junior. We chose the latter.”
Panther shares were down 10.4% at 5.6p in early morning trading in London.
“Dilutive events are an inevitability of investing in the exploration sector and this raise is undoubtedly a painful one for all our existing shareholders,” added Hazelwood. “However, this financing also provides the greatest opportunity to transform Panther Metals.”
The company plans to drill 15 holes at five separate targets at Obonga from late summer into autumn, including six at the Wishbone Prospect which will target base metals.
“Our targets are prospective for copper, nickel, platinum group metals, lithium, gold and silver,” said Hazelwood.
“Fully funded to conduct our campaign we enter the most exciting period in our history.”