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(Sharecast News) - Xtract Resources' stock price dropped more than a tenth on Thursday after the Zambia-focused miner raised 2m through a share placing to fund the ongoing development of its Silverking copper and Amghas antimony projects.
The company said it had issued 333.3m shares at a price of 0.6p each to certain existing shareholders and new investors.
Xtract's executive chair Colin Bird was among the existing shareholders mentioned, subscribing for 3.33m shares for 20,000, representing a 0.39% stake in the company.
Xtract said the funds would be used to advance its Silverking copper project in Zambia and the Amghas antimony project in Morocco "with the objective being to create small production units to start the generation of cash flow to help scale both assets in the future".
As a result of the placing being priced at a 14.29% discount to the closing price of 0.7p on Wednesday, Xtract's stock was down 11.4% at 0.62p by 1541 GMT.
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