Dateline Resources (ASX:DTR) experienced a sharp decline in share prices, plummeting as much as 23.1% to A$0.10, a new low for the gold mining company.

This significant intraday fall, the most dramatic since March 3, followed an announcement regarding a partially underwritten 1-for-1 non-renounceable rights issue offer of new shares.

With this measure, Dateline Resources (ASX:DTR) aims to gross up to A$8.85 million.

The issue price was set at A$0.01 per new share, a discount of 23.1% as compared to the close on October 5.

This capital is primarily intended to fund further explorations and pay off debt.

The announcement triggered considerable activity with approximately 2.0 million shares changing hands, in stark contrast to the 30-day average that stood at 720,429 shares.

As of the latest close, the company’s shares have dropped 64.9% year-to-date.

Dateline Resources (ASX:DTR) is an Australia-based gold mining company.