The Chrysos Corporation Ltd (ASX: C79) share price has returned from its trading halt and dropped into the red.
At the time of writing, the mining industry technology solutions company's shares are down 7% to $6.65.
Though, despite today's decline, its shares remain up over 100% since this time last year.
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Why is the Chrysos share price tumbling?
The weakness in the Chrysos share price today has been driven by the completion of an institutional placement.
According to the release, the company received firm commitments for a $75 million institutional placement. This will see the issue of approximately 11.4 million new shares at an offer price of $6.60 per new share. The latter represents a discount of 7.7% to its last close price.
Upon settlement of the placement, Chrysos will be well capitalised with a pro-forma 30 September cash balance of ~$108 million (before costs) and $22 million in undrawn debt capacity.
There is no share purchase plan accompanying the placement.
Why is the company raising funds?
Management advised that the placement will support the deployment of PhotonAssay units and accelerate its growth trajectory.
This follows Chrysos' new global partnership with Barrick Gold Corp (NYSE: GOLD) and MSALABS, through which Chrysos has the potential to deploy up to 13 PhotonAssay units to Barrick mine sites across four continents by the end of 2025.
PhotonAssay is the company's flagship product. It delivers faster, safer, more accurate and environmentally friendly analysis of gold, silver, copper and other elements.
Chrysos' Managing Director and CEO, Dirk Treasure, said:
Since listing on the ASX, Chrysos has delivered strong progress towards its vision of becoming the world's leading provider of innovative assay services and technologies. Barrick's decision to adopt PhotonAssay technology globally represents a watershed moment in Chrysos' growth and provides further validation of our technology as a superior alternative to slower, more hazardous and harmful assaying processes. The Company remains incredibly optimistic about the outlook for PhotonAssay and we look forward to continuing the delivery of our faster, safer, more accurate and environmentally-friendly assaying solution to miners globally.
