Why the Pursuit (ASX:PUR) share price is plummeting today

The Pursuit Minerals Ltd (ASX: PUR) share price is plummeting in late morning trade. This comes despite the company announcing it has received firm commitments to fund its growth strategy.

At the time of writing, the minerals exploration company’s shares are fetching for 8 cents, down 7.95%.

What’s driving the Pursuit share price lower?

Investors are scrambling to sell Pursuit shares after an impending share dilution from the company.

According to the release, Pursuit advised it has received firm commitments from sophisticated investors to raise $8.25 million through a strategic placement. This will see the issue of roughly 119.5 million new ordinary shares at a price of 6.9 cents apiece.

In addition, the company will issue 3…