- Junior Classic Minerals (CLZ) has entered a two-day trading halt as it prepares to raise some fresh funds
- The company has not revealed how much it plans to raise or where the new funds will go, but shares will be paused until Friday, November 20
- Classic as three main exploration projects across Western Australia, with the Kat Gap project the company's main focus at this point in time
- Over the September quarter, Classic drilled 83 holes at Kat Gap for 5588 metres
- The company had around $5.5 million worth of funding left at the end of September after going cashflow-negative over the quarter by $3.25 million
- Shares in Classic opened 50 per cent in the red before entering their trading halt, last trading for 0.1 cents each
Classic Minerals (CLZ) has entered a two-day trading halt as it prepares to raise some fresh funds.
The junior explorer put its shares on pause soon after market open this morning pending an upcoming announcement regarding the capital raise.
Classic has not revealed how much it plans to raise or for what it will use the new money. At this stage, shares will be on hold until Friday, November 20, unless Classic releases the cap raise announcement sooner.
The company has three core exploration projects in Western Australia, dubbed the Kat Gap project, the Forrestania Gold project, and the Fraser Range project.
Of these, Kat Gap is Classic's flagship project and has been the focus of most of its recent exploration work.
In fact, over the September quarter, Classic took on a record number of drill holes and total metres drilled at Kat Gap, drilling 83 reverse circulation holes for 5588 metres. While assays had only been received for 19 holes at the project by the end of September, some of the best results from the drilling include a two-metre hit at 16.57 grams per tonne of gold from 46 metres, which in itself included a one-metre zone grading 30.3 grams per tonne of gold.
Nevertheless, taking a look at the company's latest financial figures, Classic had $5.5 million worth of funds left at the end of September, of which just $549,000 was cash and cash equivalents. This is after the company went cashflow-negative for the September quarter by $3.25 million.
Classic was paid $1.9 million in a research and development (R&D) tax refund from the Australian Taxation Office (ATO) on October 20 and, after paying back some debts, still had about $800,000 left over for working capital.
Whether the upcoming capital raise is simply a balance sheet booster or if something bigger is in the works remains to be seen.
Shares in Classic opened 50 per cent lower before entering their trading halt this morning, last trading for 0.1 cents each. The company has a $13.34 million market cap.