Anglesey Mining shares hit multi-year lows on Friday after announcing a placing to develop their mining projects and covering general expenses.
Last week, the company raised £415,000 at an issue price of 1p, a 16% discount to the most the recent closing price at the time of the placing.
Anglesey Mining shares quickly traded below the 1p placing price on Friday and were again weaker on Monday.
The company said the funds would be allocated to the development of the Parys Mountain mine project, the advancement of the Grangesberg iron ore mine, and general working capital purposes. Some of the funds will also be used to pay down the company’s debt.
Last week’s placing follows two separate placings in 2023, which raised a total of £1.5m. The placing price was 1.5p for both of 2023’s subscriptions.
The market may fear such a small sum this time round amounts to nothing more than a sticking plaster, and the company will be back for more before long.
Chairman Andrew King subscribed for £20,000 new shares and CEO Rob Marsden‘s participation was limited to just £10,000. Rob Marsden now has a 0.27% stake in the firm.
Anglesey Mining’s share price has declined steadily since reaching highs in 2011 and is down 31% so far in 2024 and has halved since reaching YTD highs of 2p in January.
The decline in Anglesey Mining’s share has been recorded despite announcing strong drilling results from the Parys Mountain project in April.