Shares of Orosur Mining Inc (LON: OMI) today fell 22.4% after the mining company announced that it had raised £4 million via a discounted share issue to fund the advancement of its Anza project in Columbia.
The new shares were issued at a price of 17p representing a 30% discount to Friday’s closing price of 24.5p triggering the massive decline as the existing shares fell to catch up with the pricing of the new shares.
Orosur Mining also announced that drilling at Anza had started as planned on November 15th and that the additional funds would boost its position at the site.
The company also announced that a second rig had arrived on site and would start operations within the next seven days.
Brad George, Orosur Mining’s CEO, said: “We are pleased and excited by the positive response from the investment community, as a testament to how well the Anza project is viewed,”
“This oversubscribed placement strengthens our balance sheet and will allow us to sustain our position with respect to the Anza JV for some considerable time as the current drilling program ramps up and continues into 2021.”
The new share issue dilutes current investors, as reflected in the decline witnessed today.
Orosur Mining share price
Orosur Mining shares today plunged 22.4% to trade at 19p having dropped from Friday’s closing price of 24.5p.