Shares of Cauldron Energy (ASX:CXU) experience a significant dip, falling as much as 9.1% to A$0.010, marking its lowest point since September 27.

The mineral exploration company announced that it has received firm commitments to raise A$1.6 million, including A$198,000 through a placement and a fully underwritten renounceable rights issue worth A$1.4 million.

The placement occurred at an issue price of A$0.009, reflecting an 18.2% discount to the stock’s closing price.

The event also saw a significant change in hands with nearly 12 million shares traded, against the 30-day average turnover of 8.5 million shares.

If these losses persist, Cauldron Energy is on course for its worst performing week since June 10, 2022.

As of the most recent closing, the stock is up over 57% this year.

Cauldron Energy is a mineral exploration company based in Australia.