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- Cauldron Energy (CXU) has received commitments to undertake a $1.6 million placement
- More than 51.6 million fully-paid shares will be issued to sophisticated and professional investors at 3.1 cents each
- Additionally, participants will receive one free attaching option for every two new shares subscribed for with an exercise price of 5 cents and expiry on or before November 30, 2023
- Cauldron will primarily use the money to speed-up exploration at its Blackwood Gold Project in Victoria which has been inactive since the late 1990s
- The money will also be used for the maintenance of the Yanrey Uranium Project in Western Australia and general working capital
- Shares in Cauldron have been trading for 3.9 cents since October 22
Cauldron Energy (CXU) has received commitments to undertake a $1.6 million placement.
The company entered a trading halt late last week but did not disclose how much it would be raising or what the funds will go towards.
All up, 51,612,903 new fully-paid ordinary shares will be issued to sophisticated and professional investors at 3.1 cents each.
This price represents a 3 per cent discount to Cauldron’s last closing price of 3.2 cents on October 21, and a 15 per cent discount to the five-day volume-weighted average price of 3.68 cents.
In addition, participants will receive one free attaching option for every two new shares subscribed for.
These options will have an exercise price of 5 cents, exercisable on or before November 30, 2023.
The placement is expected to be completed on November 4 with shares to be issued the next day.
Cauldron will primarily use the money to speed-up exploration at its Blackwood Gold Project in Victoria which has been inactive since the late 1990s.
The money will also be used for the maintenance of Cauldron’s Yanrey Uranium Project in Western Australia and general working capital.
“Cauldron is delighted with the strong response to the placement and strong support for the company’s strategic direction which will focus around the Blackwood Gold Project,” CEO Jess Oram said.
“The funds will be used to implement and fast-track well planned and systematic exploration of the project which is home to 15 historical production shafts and in excess of 250 underground workings,” he said.
“The work will commence once all approvals from the Victorian mines department is finalised and discussions with the community are completed,” he added.
Shares in Cauldron have been trading for 3.9 cents since October 22. The company currently has a $15.33 million market cap.
