GreenRoc Mining shares sank to an all-time low on Wednesday after the Greenland-focused miner conducted a heavily discounted placing.
GreenRoc Mining has raised £460,786 through a placing of 18.4 million new shares at 2.5p per share. Participants in the placing included GreenRoc’s CEO, Chairman and an Independent Non-Executive Director.
Shares in the company were down 24% to 2.56p at the time of writing. GreenRoc shares traded as high as 4.5p in early November after the company’s float at 10p in 2021.
The proceeds will primarily be used to fund work related to GreenRoc’s Amitsoq graphite project in Greenland. This includes completing a feasibility study on building a processing plant to produce active anode material for electric vehicle batteries. The feasibility study is being supported by a £250,000 grant and is expected to finish in Q2 2024.
Additional proceeds will support the completion of environmental and social impact assessments for the Amitsoq project. These assessments will be delivered in 2024 and are required for GreenRoc to submit an application for an exploitation permit. A recent change in Greenland’s mining law allows companies to apply for this permit before submitting the final assessments, subject to their subsequent approval.
The funds will also be used for further commercial negotiations with potential partners, as well as general working capital needs.