GreenX Metals Ltd (LSE:GRX, ASX:GRX) shares fell 6% to 47.91p as it said it was raising A$4.2mln (£2.1mln) in a placing priced at a discount to its recent highs, having recently acquired an option to buy the Eleonore North gold project in eastern Greenland.
It said investors have given commitments to buy 5.2mln new shares at a price of A$0.80 (41p) per share, with its shares having risen to a high of 60p at the end of last month, despite no formal news having been released.
GreenX said it would use the proceeds from the fundraising, added to its A$8.7mln of existing cash resources at the end of June, for exploration activities at its projects in Greenland.
As well as the Arctic Rift copper project, an exploration joint venture with Greenfields Exploration Ltd targeting a special exploration licence in North Greenland, GreenX also recently acquired an option to earn 100% of the Eleonore North gold project, where it needs to spend A$600,000 on exploration within 12 months in exchange.
The company is still awaiting the decision over its arbitration case against the government of Poland, where it has claimed for £737mln of damages.