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  • Carpentaria Resources (CAP) receives commitments to undertake a $35.6 million capital raising
  • The $35.6 million will be raised through an $8.15 million placement and a $27.45 million underwritten entitlement offer
  • More than 237 million shares will be issued to shareholders at 15 cents each – a 1.3 per cent premium to the 30-day volume-weighted average price
  • Carpentaria will use the funds to complete the Hawsons Iron Project bankable feasibility study as well as undertake drilling, engineering and design work
  • Carpentaria has ended the day 18.6 per cent in the red with shares trading at 17.5 cents

Carpentaria Resources (CAP) has received commitments to undertake a $35.6 million capital raising.

The company entered a trading halt on July 2 but did not disclose how much it intended to raise or what it would use the funds for.

The $35.6 million will be raised through a $8.15 million placement and a $27.45 million underwritten entitlement offer.

Placement

The placement will be completed in two phases with a total of 54.3 million shares issued to shareholders at 15 cents.

The price of 15 cents represents a 1.3 per cent premium to the 30-day volume-weighted average price and a 13.5 per cent discount to the 20-day volume-weighted average price.

Phase one will set to raise $2 million through the issue of 13.3 million shares with settlement expected on July 12.

Phase two, which is subject to shareholder approval, will involve 41 million shares issued to raise the remaining $6.15 million.

Entitlement offer

Under the entitlement offer, eligible shareholders will be able to subscribe for one new share for every 2.6 held.

Approximately 182,977,171 new shares will be on offer at 15 cents.

Carpentaria will use the funds to complete the Hawsons Iron Project bankable feasibility study (BFS) as well as undertake drilling and engineering and design studies.

Executive Chairman Bryan Granzien is pleased with the outcome of the capital raise and is looking forward to putting the funds to good use.

“We are now in the strong position of not requiring funding from potential off-take partners at this stage, which will enhance the company’s position in any future off-take arrangements,” Mr Granzien said.

“Early in the year, we carried out strategic planning sessions in respect of the Hawsons Iron Project and its financing. BFS funding is a significant part of that plan, and we are confident this will lead to the successful development and operations at Hawsons.”

Carpentaria has ended the day 17.4 per cent in the red with shares trading at 17.8 cents in a $102.2 million market cap.

CAP by the numbers
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