Junior explorer Ferrum Crescent has taken the unusual step of telling shareholders it doesn’t need the full $2.7 million it was seeking to fund work at its Toral lead and zinc project in Spain.

The board of Ferrum (ASX:FCR) originally envisaged it would need to raise up to $2.7 million via a private placement.

However, after an initial review of its Toral project, the company believes it can build value from the project at a lower cost than originally planned — and has scrapped the placement.

“From initial work completed, the Board believes it is possible to pursue a strategy to build value at the Toral lead zinc asset for a cost lower than originally planned and, therefore, the full $A2.7 million which the Board originally envisaged would be required to be raised in a placing, may not be required,” the company said.

The Toral operational review follows the resignation of executive chairman Justin Tooth last month.

FCR has now withdrawn a resolution that was to seek shareholder approval to raise the cash at its general meeting later this month.

Further results from the operational review will be released to the market shortly.

The Toral site, in the Leon province of north-western Spain, has 44,000 metres of historic drilling and an “inferred” and “indicated” resource estimate of 8.71 million tonnes at an economic grade cut-off of 7 per cent lead and zinc.

Mineral resources are categorised in order of increasing geological confidence as inferred, indicated or measured.

Ferrum reported a loss of $11.3 million last year and had a little over $500,000 in the bank at the end of June.

Its shares closed Friday unchanged at 0.1c.