The New World Resources (ASX: NWC) share price plunged in today's trading session. This comes after the company has emerged from a trading halt. The sell-off follows a slew of announcements released by the company earlier today.
The New World share price last traded at 11 cents before entering a trading halt on Monday. Shares in the company are down 9.09%, trading at 10 cents each at the time of writing. Earlier today, shares hit an intra-day low of 9.9 cents.
Here's what New World Resources announced and how it has influenced the company's share price.
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Capital raise announcement
Earlier this week, shares in New World were placed in a trading halt pending execution of a capital raising.
Shares in the company were reinstated today after New World announced firm commitments to raise $20 million via a share placement. The two-tranche placement will involve the issue of 200 million new and fully-paid ordinary shares at 10 cents each. The issue price represents a 9.1% discount to New World's last closing price of 11 cents per share.
The first tranche will see around 90 million shares issued in May 2021, with the second trance subject to shareholder approval.
According to the company, funds raised will go towards accelerating the development of its Antler Copper Project. New World's management noted that the placement will ensure that the company is fully funded to advance expansion drilling and feasibility studies.
More on New World Resources
New World Resources is an Australian company focused on the exploration and development of mineral resources. The company has numerous projects and assets in North America, with its flagship Antler Copper Project is based in Arizona.
In late April, the company announced that it had identified a significant exploration target near its Antler Project. According to New World, drilling confirmed that substantial thick and high-grade mineralisation remains unmined at the project.
As a result, the company believes that the Antler Project could have the highest-grade undeveloped copper deposits. In order to maintain focus on its promising Anther Project, New World has also proposed demerging its cobalt assets and projects into a separate listing.
The company currently has 100% interest in the Colson Cobalt-Copper Project in Idaho and the Goodsprings Copper-Cobalt Project in Nevada.
