United States Antimony Corporation (UAMY) saw its stock price plummet by 5.52% in pre-market trading on Tuesday, following the company's announcement of a $25 million registered direct offering of common stock. The sharp decline comes despite the offering being priced above market under NYSE rules, suggesting investors' concerns about potential share dilution.

According to the company's statement, UAMY has entered into a securities purchase agreement with a leading long-only mutual fund for the aggregate proceeds. The net proceeds from this offering are intended to be used for various purposes, including acquiring additional antimony and critical mineral inventory, expanding leasehold mineral positions in Alaska and Montana, potentially increasing capacity at the Madero Smelter, pursuing acquisitions of other critical mineral companies, and for general working capital purposes.

Interestingly, this stock plunge occurs against a backdrop of generally positive sentiment in the rare-earth metals sector. Other critical-mineral companies have seen significant gains due to escalating U.S.-China trade tensions, with some stocks rising by double-digit percentages. However, the dilutive effect of UAMY's stock offering appears to have overshadowed any potential benefits from the broader market trends in the critical minerals space.