You know things are on the mend when junior resource stocks are feeling confident enough to undertake a capital raising.
Tiger Resources is not wasting any time to capitalise on the rebound in market confidence and has announced a massive capital raising this morning that will see its market capitalisation increase by close to 20%.
The stock has slumped 8.9% to 36 cents in response to the news that the emerging copper producer is tapping shareholders on the shoulder to tip around $50.5 million into its coffers through two placements to professional investors and a share purchase plan (SPP) for retail shareholders.
The first placement of 100 million shares at 34 cents has already been completed but management has to get shareholder approval to undertake the rest of the raising to secure the remaining $16.5 million.
Management should have little trouble raising the cash as its flagship Kipoi project in the Democratic Republic of Congo is ramping up ahead of expectations and is set to become a significant low-cost copper producer.
Tiger, which is part of the Uncapped 100, has surged 140% since the start of the financial year.