By Rory Gallivan
LONDON--Shares in ZincOx Resources PLC (>> ZincOx Resources plc) fell nearly 40% Wednesday after the zinc recycler said it planned to raise at least $6.5 million to help it cope with low prices for the metal.
"The decline in the zinc price has had a material adverse impact on the cash position of the company and absent a new injection of capital, the company will face a shortfall in its cash position by the end of 2015," ZincOx said.
The company, which operates a plant in Korea that extracts zinc from waste generated steel scrap recycling, warned in September that if the zinc price didn't recover--then trading at around $1,660 a ton--it might need to review financing options. The price recently fell as low as $1,487 a ton, the company said Wednesday.
ZincOx said if it fails to raise sufficient money it will have to transfer a 90% stake in its plant to its lender, zinc smelting company Korea Zinc.
Shares at 1621 GMT, were down 2 pence, or 37.7%, at 4 pence valuing the company at 7.8 million pounds ($11.8 million).
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