- Junior gold explorer Castle Minerals (CDT) is getting ready to tap investors for some extra cash soon after snatching up two extra Western Australian gold projects
- The company bought the two projects over the March quarter to add to its existing portfolio of gold projects in WA and Ghana, West Africa
- Today, the company requested back-to-back trading halts as it prepares a new capital raising plan
- Details of the plan are set to be revealed next Wednesday
- Shares in the company last traded for 1.5 cents each yesterday afternoon
Junior gold explorer Castle Minerals (CDT) is getting ready to tap investors for some extra cash soon after snatching up two extra Western Australian gold projects.
The company bought the Wanganui and Polelle projects in the March 2020 quarter to add to its existing WA project portfolio. Castle also holds an interest in several projects in Ghana, West Africa.
Today, the company requested back-to-back trading halts as it prepares to launch a new capital raising plan. Details around the raise have not yet been revealed, but it's likely the extra cash will go towards exploration and operating costs across its projects.
In its latest quarterly report, Castle revealed it had just $184,000 in the bank at the end of March after spending $148,000 over the March quarter. At this level of spending, Castle would only be able to operate for just over one more financial quarter before running out of cash.
To stay afloat, the company completed a share placement of just under $500,000 in the June quarter. Now, Castle is looking to raise some more funds.
Castle revealed in a company presentation yesterday it's planning a 2000-metre reverse circulation (RC) drilling programme at the new Wanganui project to test some new and established gold targets. Polelle is not quite ready to be explored just yet, but ticks all the right geological boxes, according to Castle.
Castle shares are frozen until Wednesday, July 15. Until then, shareholders have the weekend to speculate before finding out exactly where the funds from the new capital raise will be headed.
Shares in Castle Minerals last traded for 1.5 cents each yesterday afternoon.