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  • Calidus Resources (CAI) has received firm commitments to raise up to $12.5 million in capital via a share placement to professional and sophisticated investors
  • Through the placement, Calidus will issue 31.25 million shares at 40 cents each, representing an 11 per cent discount to the company’s five-day volume-weighted average price
  • The company will use the proceeds to acquire the Blue Spec Project, which has a resource of 219,000 ounces at 16.3 grams per tonne gold, just 75 kilometres from Warrawoona in WA’s Pilbara
  • There, the funds will be used for activities including drilling, feasibility studies and exploration
  • Calidus Managing Director Dave Reeves has applied for $250,000 in the placement, subject to shareholder approval
  • Meanwhile, the company’s largest shareholder, Alkaline Resources, has subscribed for $1.28 million to maintain its shareholding
  • Calidus Resources shares are down 2.27 per cent, trading at 43 cents each

Calidus Resources (CAI) has received firm commitments to raise up to $12.5 million in capital, before costs, via a share placement to professional and sophisticated investors.

Through the placement, Calidus will issue 31.25 million shares at 40 cents each.

The issue price represents a 9.1 per cent discount to the last closing price on March 22.

It is also an 11 per cent discount to the company’s five-day volume-weighted average price (VWAP), and a 6 per cent discount to the 15-day VWAP.

Calidus will use the proceeds to acquire the Blue Spec Project, which has a resource of 219,000 ounces at 16.3 grams per tonne gold and is located just 75 kilometres from Warrawoona in WA’s Pilbara.

The gold miner will also use the capital to fund drilling, feasibility studies and exploration at Blue Spec, noting the project’s potential to increase Warrawoona’s production, mine life and free cashflow significantly.

Calidus Resources Managing Director Dave Reeves has applied for $250,000 in the placement, subject to shareholder approval.

“This highly successful raising enables Calidus to complete the Blue Spec purchase, which in turn opens the door to increasing production to a stray run rate of 130,000 ounces a year, growing cash flow in the process,” Dave commented.

“While our focus remains the successful commissioning of the stage one Warrawoona Project, which is on track to pour first gold in the new year, we will also progress Blue Spec to feasibility level,” he continued.

“This will enable us to implement the increase in production with minimal delay once we are satisfied with the performance at Warrawoona.”

The company’s largest shareholder, Alkaline Resources, has subscribed for $1.28 million in the placement to maintain its shareholding.

Calidus expects the placement shares to settle on March 31 and commence trading on the ASX from April 1.

Calidus Resources shares are down 2.27 per cent, trading at 43 cents at 2:45 pm AEDT.

CAI by the numbers
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