03:11 PM EDT, 05/11/2018 (MT Newswires) -- Canada Carbon (CCB.V) was down 13% as the company said Friday it raised $224,000 from a private placement of share units to raise funds for a court fight against a Quebec municipality that blocked its planned graphite mine.

The company sold 2.8 million $0.08 units consisting of a share and a three-year warrant to purchase a second share for $0.11.

Canada Carbon said the money will be used for legal costs as it battles the municipality of Grenville-sur-la-Rouge, which blocked its Miller graphite-mine project, citing environmental concerns.

"The Board of Directors and senior officers of Canada Carbon are fully committed to reinstating and completing the Miller Project permitting process," Bruce Duncan, the company's executive chairman, said in a statement. "All non-essential expenses, including salaries, are being deferred in order to focus all available financial resources on defending the company and its shareholders' rights to develop the environmentally benign Miller marble quarry and graphite mine."

Canada Carbon shares were down $0.01 to $0.07 at last look on the TSX Venture Exchange.

Price: 0.07, Change: -0.01, Percent Change: -12.50