LONDON (Alliance News) - Nyota Minerals Ltd shares dropped on Thursday afternoon after the company conducted a substantial placing at a discounted price to allow the company to progress its new strategy.
Nyota shares were trading down 14.6% to 0.0470 pence per share on Thursday afternoon.
The company said it placed 375.0 million new shares in the company at an issue price of 0.05p per share - a discount to the company's closing share price on Wednesday of 0.055 pence. Those shares represent around 20% of the company's enlarged issued share capital.
The company raised a total of GBP187,500 from the placing, which it will use for exploration activity and for general working capital, it said.
'The board is currently reviewing a range of options for the next stage in the development of the company's business," said Chief Executive Richard Chase.
"Given current poor market sentiment towards publicly traded junior exploration companies and the availability and valuation of exploration projects that are appropriate for the AIM and ASX markets, the Board is considering acquisition opportunities in complementary sectors or in new sectors such as the Fin-Tech and Tech sectors that could potentially offer superior shareholder value," he added.
The company announced plans to potentially spin off its mineral business and invest in other sectors in late November, and currently has a nickel and copper project in Italy and further exploration in Ethiopia.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
