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- Korab Resources (KOR) has raised $1.9 million in extra cash through a share placement to un-related exempt investors
- KOR came out of a trading halt to announce the fundraise on Thursday, with shares dipping over 20 per cent since resuming trade
- The correction in share price comes after KOR almost tripled its value earlier this week when shares jumped from 2.7 cents to 7.5 cents
- Under the raise, the company issued 34.5 million KOR shares at 5.5 cents each to the investors — a 26.7 per cent discount to its last traded price
- Korab Resources shares ended Thursday down 20 per cent at 6 cents each
Korab Resources (KOR) shares have dipped after the exploration company announced it had raised $1.9 million in extra cash through a capital raise.
KOR came out of a trading halt to announce the fundraise on Thursday, with shares dipping over 20 per cent since resuming trade.
The correction in share price comes after KOR almost triples its value earlier this week when shares jumped from 2.7 cents on October 25 to 7.5 cents on October 26.
Meanwhile, under the capital raise, the materials stock issued 34.5 million KOR shares at 5.5 cents each to un-related exempt investors.
The issue price represents a 26.7 per cent discount to the company’s last traded price of 7.5 cents per share.
KOR explains the share issue will constitute a dilution of around 10 per cent of the issued capital held by Korab shareholders.
It also revealed it initially fielded applications for around $4.3 million worth of shares under the offer, before the offers were scaled back.
The business said it would use the funds raised “to continue exploration and development work on Korab’s mineral assets, for general working capital purposes, and to retire debt.”
Following the release of the capital raise news, Korab Resources has ended the day down 20 per cent at 6 cents each.
