Tertiary Minerals (LSE:TYM) shares traded lower, losing 9.4% on Thursday to 0.0589p, accounting for the news of a new £985,000 placing, pricing 1.97bn new shares at 0.05p.
Proceeds of the raise are earmarked to fund the drilling of the explorer's Target A1.
At Target A1, the goal is to produce a maiden JORC Mineral Resource Estimate by the end of 2026.
“This capital raise is designed to further advance work on our flagship Target A1 silver oxide discovery, including drilling and metallurgical testwork to delineate a maiden Mineral Resource Estimate by the end of this year,” Richard Belcher said.
The new shares represent around 28% of the company's enlarged share capital.
Tertiary Minerals noted that the placing was filled by institutional and high-net-worth investors through joint brokers SP Angel and AlbR, who will be issued 98.5m warrants exercisable at the placing price for 12 months.
Two company directors intend to subscribe a further £15,000 in aggregate for 30m new shares on the same terms.
