Metex fails rights issue, shares down 13%

Shares in West Perth-based mineral explorer Metex Resources Ltd fell 13 per cent before the company suspended its shares from quotation on news it had failed to achieve the minimum subscription for a non-renounceable rights issue.

The company had aimed to raise a minimum of $2.4 million, to be used to fund exploration of the company's uranium and gold tenements.

Metex was also involved in a joint venture with the CSIRO to trial the in situ gasification of underground coal, which was also to be funded by the capital raising.

In an announcement, Metex informed shareholders that it would refund all application funds received, and woudl pursue alternative fund raising options.