GCM Resources PLC on Wednesday said it has raised £500,000 through a placing, and will need to carry out an additional fundraise before the end of the year.

The resource exploration and development company is focused on the Phulbari coal and power project in north-west Bangladesh.

GCM said it has raised £500,000 through a placing of 20.0 million new shares, priced at 2.5 pence per share.

GCM said the placing price represents a 41% discount to the closing price of 4.25p on Tuesday.

Shares in the company plunged 40% to 2.53 each in London on Wednesday morning.

GCM said the net proceeds of the placing are for ‘general working capital purposes.’

Looking ahead, the company said it will need to carry out an additional fundraise before the end of 2023 to fund its working capital into 2024.

Copyright 2023 Alliance News Ltd. All Rights Reserved.