United States Antimony Corporation (UAMY) saw its stock price plummet by 5.04% over a 24-hour period 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, indicating 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. While the exact number of new shares to be issued was not disclosed, such offerings typically lead to an increase in the total number of outstanding shares, potentially diluting existing shareholders' stakes. This prospect appears to have overshadowed the fact that the offering was priced above market value.

United States Antimony Corporation plans to use the net proceeds from this offering for various strategic initiatives. These include 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. Despite these growth-oriented plans, the market's immediate reaction suggests that concerns over the short-term impact on share value outweighed the potential long-term benefits of the capital raise.