Shares of Lunnon Metals (ASX:LM8) saw a drop of as much as 9.2% to A$0.89, marking its largest intraday percentage decline since mid-October last year.

The company’s stock hit its lowest level since July 24.

Lunnon Metals (ASX:LM8), which is a nickel sulphide mining enterprise, has confirmed firm commitments to generate A$18 million through the placement of 20 million shares.

The offer price of A$0.90 per share showcases an 8.16% discount to the closing price of A$0.980 recorded last.

The funds which are expected to be raised will be allocated towards the discovery programs for the company’s projects in south-southeast Kalgoorlie.

As of the latest reports, approximately 215,400 shares have been traded, which is significantly more than the 30-day average of 106,000 shares.

The company’s stock has seen an increase of 9.5% this year, as recorded at the last closure.

Lunnon Metals (ASX:LM8) is a nickel sulphide mining enterprise, with primary operations in the south-southeast of Kalgoorlie.