- Gold explorer Castle Minerals (CDT) has announced today its latest share placement was "heavily oversubscribed", pulling in almost $1 million
- The capital raise was announced yesterday, with Castle expecting to keep its shares frozen until next Wednesday as it prepared the placement
- However, just one day later Castle announced it is set to place just under 100 million shares at one cent each to raise $973,000
- The funds from the placement will go towards exploration work at Castle's WA and Ghana projects
- The new placement is expected to settle on or around July 16
- Shares in Castle Minerals declined by almost seven per cent today to 1.4 cents each
Gold explorer Castle Minerals (CDT) has announced today its latest share placement was "heavily oversubscribed", pulling in almost $1 million.
Castle announced the capital raise yesterday, expecting to keep its shares frozen until Wednesday, July 15 as planned and carried out the share placement. Yet, one day later and it's all done and dusted, according to the company.
Castle told shareholders today it has successfully placed roughly 97.3 million new shares to professional and sophisticated investors at one cent a pop to raise $973,000.
Castle Managing Director Stephen Stone said the new cash will go towards exploration work at the company's Wanganui, Polelle, and Beasley Creek gold projects in Western Australia, as well as its Wa project in Ghana, West Africa.
Castle recently purchased the Wanganui and Polelle projects over the March 2020 quarter. Castle bought the Wanganui project back in 2007 and has since discovered some key deposits in the project area.
"Importantly, it also provides the company with greater flexibility to respond to new opportunities," Stephen said.
As for the cost of the capital raise, Lead Manager GTT Ventures will pocket a fee of six per cent of the total funds raised. On top of this, GTT will also be given 10 million unlisted Castle options, exercisable at two cents each by June 30, 2022.
Shares in Castle Minerals declined by 6.67 per cent today to 1.4 cents each. The company has a market cap of $5.45 million.