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- Centaurus Metals (CTM) has received firm commitments to undertake a $25.5 million placement
- To raise the funds, more than 60 million shares will be issued to institutional and sophisticated investors at 42 cents each
- The company says the placement was met with high demand, with bidding significantly exceeding the $25.5 million benchmark
- Centaurus will use the money to aggressively explore and expand its drill program at the Jaguar Nickel Sulphide Project in Brazil, as well as fast-track studies to advance the project towards development
- The money will also increase the company’s cash balance to around $30 million, putting it in a strong position to speed-up drilling activities
- Centaurus is up 3.19 per cent on the market and shares are currently trading for 48.5 cents each
Centaurus Metals (CTM) has received firm commitments to undertake a $25.5 million placement.
To raise the funds, 60,714,286 shares will be issued to institutional and sophisticated investors at 42 cents each.
This price represents a 10.6 per cent discount to the 47 cents closing price on July 21, and an 11 per cent discount to the five-day volume-weighted average price of 47.2 cents.
Centaurus received a high amount of demand, with bidding significantly exceeding the $25.5 million benchmark. As a result, bids were scaled back to accommodate the demand.
Additionally, Canadian-based resource investor Dundee Goodman Merchant Partners invested $7 million.
Centaurus will use the money to aggressively explore and expand its drill program at the Jaguar Nickel Sulphide Project in Brazil, as well as fast-track studies to advance the project towards development as soon as possible.
The money will also increase Centaurus’ cash balance to around $30 million, putting it in a strong position to speed-up drilling activities.
A reverse circulation (RC) will arrive on-site in September and will be used to drill pre-collars.
Additionally, a third diamond drill rig will be reactivated in the next few weeks to in-fill and extend the near-surface high-grade mineralisation.
“The exceptional response to this raising both in Australia and internationally reflects the quality, scale and potential of the Jaguar Project as a possible tier-one nickel sulphide asset in the global landscape,” Managing Director Darren Gordon said.
“Following the raise, we will be able to pursue a twin-pronged strategy of aggressive resource growth and exploration at Jaguar in parallel with development, permitting and mining studies on the already globally significant mineral resource,” he added.
Centaurus is up 3.19 per cent on the market and shares are trading for 48.5 cents each at 12:04 pm AEST.
