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TYM

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BAD

Tertiary Minerals Raises £350,000 Through Discounted Placing

Why we think this is bad

The equity raise is priced at a significant 25.0% discount to the previous closing share price, indicating low investor appetite for the company's shares. While the funds will be used for exploration and development, the material 23.9% dilution for existing shareholders is a negative impact. As a micro-cap company, the large discount raises concerns about the company's underlying fundamentals and growth prospects.

Key Points

  • Tertiary Minerals raises £350,000 through a placing of 1,166,666,667 new shares at 0.030 pence per share
  • The placing price represents a 25.0% discount to the previous closing price
  • The new shares will dilute existing shareholders by approximately 23.9%
  • Funds will be used for exploration and development at the Mushima North Project, as well as working capital

Summary

The explorer has raised £350,000 through a discounted placing, with the new shares priced at a 25% discount to the previous closing price. The funds will be used for exploration and development, but the material dilution for existing shareholders is a concern.

Tertiary Minerals plc (AIM: TYM) has raised £350,000 before expenses through a placing of 1,166,666,667 new ordinary shares at a price of 0.030 pence per share, representing a 25.0% discount to the previous closing price. The net funds will be applied to drilling at the Company's Mushima North Project and for working capital.

The placing represents approximately 23.9% dilution for existing shareholders, which is a material impact. While the purpose of the raise is to fund exploration and development activities, the significant discount to the previous closing price suggests low investor appetite for the company's shares, raising concerns about its underlying fundamentals and growth prospects.

Key Dates

12 June 2025
Admission of new shares to trading on AIM
PLACING