Metals explorer and producer W Resources PLC (LON:WRES) will raise £1mln through a share placing in order to expand the production capacity at its La Parrilla tungsten mine in Spain.
It will also use the windfall to complete gold drilling at its highly prospective São Martinho gold deposit in Portugal, as well as for general working capital, W said.
It will issue 192.3mln shares to new and existing shareholders at a price of 0.52p per share to generate the cash.
W’s chairman, Michael Masterman, will also put up £100,000 of his own money in the placing, taking his total stake in the company to 22.79%.
Shares were down 2% to 0.56p.