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  • Capricorn Metals (CMM) has received firm commitments to undertake a $32.3 million share placement
  • Shares will now be issued to sophisticated, professional, and institutional investors at a price of $1.90 each
  • The settlement is expected to occur on August 4 and shares will be allocated on August 5, 2020
  • Capricorn Metals will use the funds to develop its Karlawinda Gold Project (KGP) in Western Australia, speed-up exploration at an under-explored area at the KGP, and construct an airstrip on site to deliver efficiency
  • Further, following strong demand, the company’s largest shareholder Hawke’s Point will sell 20.2 million Capricorn shares at a price of $1.90 each
  • Once completed, Hawke’s Point will retain 34.3 million shares, representing a 9.99 per cent holding compared to the previous 16.69 per cent
  • Capricorn shares are down 5.34 per cent and are trading for $1.95 each

Capricorn Metals (CMM) has received firm commitments to undertake a $32.3 million share placement.

Shares will now be issued to sophisticated, professional, and institutional investors at a price of $1.90 each.

This price represents a 7.8 per cent discount to Capricorn’s last trading price of $2.06 on July 28, and a 1.2 per cent discount to the five-day volume weighted average price of $1.92.

Shares are expected to settle on August 4 and be allocated on August 5.

Capricorn will use the money to develop its Karlawinda Gold Project (KGP) in Western Australia, speed-up exploration at an underexplored area at the KGP, and construct an airstrip on site to deliver efficiency.

“The proceeds from this placement will primarily be invested in the KGP processing plant with a view to delivering higher processing throughput facility,” Executive Chairman Mark Clark commented.

“With the potential to process up to five million tonnes of ore per annum in the first three years of the project, this is expected to have positive implications for production, payback and overall project economics,” he added.

Further, following strong demand, shareholder Hawke’s Point will sell 20.2 million Capricorn shares at a price of $1.90 each.

Once completed, Hawke’s Point will retain 34.3 million shares, representing a 9.99 per cent holding compared to the previous 16.69 per cent holding.

Hawke’s Point has been Capricorn’s largest shareholder since February 2017 when it subscribed for Capricorn shares in a placement at a price of 11.7 cents per share.

“The decision to divest a minority portion of our Capricorn shareholding was driven by portfolio weighting considerations and the opportunity to monetise the original cost of our investment in Capricorn,” Hawke’s Point representative Erik Caspersen said.

“We look forward to remaining strong supporters of Capricorn as the company further progresses Karlawinda toward first gold production and beyond,” he added.

Capricorn shares are down 5.34 per cent and are trading for $1.95 each at 2:22 pm AEST.

CMM by the numbers
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