Cleveland Mining Company is assessing its legal options after stockbroker DJ Carmichael failed to complete a $1 million tranche of a share placement.
Cleveland initially announced in February it was seeking $5.5 million through the placement, which was to take place in two tranches.
The first $4.5 million tranche, priced at 25 cents per share, was settled on February 19.
The second tranche, for the remaining $1 million balance, was due to settle at the end of April.
Cleveland said today it had been informed by DJ Carmichael that the funds would no longer be on their way because the broker had failed to place the shares.
DJ Carmichael blamed weak capital market conditions for its failure to place the shares, Cleveland said.
The miner said it would continue to assess its legal rights with respect to the share issue.
Meanwhile, Cleveland said it had secured a $1 million convertible debt facility in replacement for the funds it previously expected to receive.
The facility is from an existing shareholder and has a coupon rate of 7.5 per cent per annum and a term of six months. The notes can be converted into ordinary shares at 25 cents.
At 11:50AM, WST, Cleveland Mining shares were up 5.9 per cent, trading at 18 cents.
Cleveland also announced today it had moved towards acquiring the first projects under its strategic alliance with Pilbara iron ore miner BC Iron in Brazil.