Shares of Thor Mining Plc (LON: THR) fell 7% after announcing that it had raised £800,000 via a private placement to fund the exploration activities on its Ragged Range project.
The company has gold and nickel prospects in the Pilbara, Western Australia, which it plans to advance following the recent capital raise.
The broader markets did not appreciate the move, which led to the dilution of current shareholders and the earlier decline.
Nicole Galloway Warland, Thor Mining’s managing director, said: “This additional capital for Thor Mining will allow us to continue the intensive exploration work program at our exciting Ragged Range gold & nickel project, including RC drilling of priority drill targets, as well as exploration drilling at Molyhil tungsten-molybdenum project.”
The firm is well-positioned to capitalise on the rising copper prices amid elevated global demand but is still far from producing actual copper ore that can generate revenues.
Thor Mining’s shares had recouped some of their losses at the time of writing. However, the company’s shares are trading 42.72% off their June high of 1.175p and could have found a bottom at the 0.673p level.
The mining and exploration company’s shares have been falling despite releasing multiple positive announcements, such as the ongoing drilling campaign at its Alford East copper-gold project.
Traders looking for aggressive entries could buy Thor’s shares at current prices, given that the shares appear to have bottomed and could rally higher going forward.
*This is not investment advice.
Thor Mining share price.
Thor Mining shares fell 7.03% to trade at 0.674p, falling from Tuesday’s closing price of 0.725p.
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