- Capricorn Metals has announced it will raise $65 million in a placement for development at its Karlawinda Gold Project
- The proceeds of the raising are expected to take Capricorn’s cash balance to approximately $90 million by the end of September
- The funding will go towards the Karlawinda Project that is expected to be up and running by March 2020
Capricorn Metals has announced it will raise $65 million in a placement for development at its Karlawinda Gold Project.
The placement includes an of issue 406.25 million shares at 16¢ per share and will be completed in two tranches.
The first tranche will include 125.4 million shares to raise $20.1 million. The second tranche will raise $44.9 million with the issue of 280.8 million shares.
The proceeds of the capital raise are expected to take Capricorn’s cash balance to approximately $90 million by the end of September.
The funding will go towards the Karlawinda Project, which is expected to be up and running by March 2020.
The Project is located in the Pilbara region of Western Australia and is 70 kilometres southeast of Newman.
Karlawinda is an advanced gold project which is close to key infrastructure and mining support services.
When Capricorn acquired the project from IGO in 2016, the project already had approximately $12 million spent on it for regional exploration, resource evaluation and pre-feasibility activities.
Chairman Mark Clark is pleased with the support from the capital raise and is looking forward to further developing Karlawinda.
“We are very pleased to have received commitments for this $65 million share placement as it will allow Capricorn to move towards development of the Karlawinda Gold Project with confidence that there is now a clear funding pathway for the project,” he said.
Capricorn Metals has gained 9.21 per cent today and is currently selling shares priced at 20.8¢ apiece.