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  • Crusader Resources is seeking to raise $4.1 million through an entitlement offer.
  • Funds will predominately be used to boost its Brazilian Borborema gold project.
  • Shareholders with registered addresses in Australia, New Zealand and the United Kingdom are eligible.

Mineral exploration company Crusader Resources is attempting to raise $4.1 million through a non-renounceable entitlement offer. The offer will allow shareholders to gain two new shares for every three shares held at the price of $0.01 each.

The company plans to use the raised funds to complete a feasibility study at its Borborema gold project, located in the Rio Grande do Norte state, Brazil. Additionally, exploration and holding costs of the project are expected to be covered by the funds.

Crusader has three exploration licenses at the Borborema project, spanning 29km2. The JORC mineral resource estimate predicts the project holds 2.43 million ounces of gold and a 42.4Mt ore reserve holding 1.61 million ounces of gold at 1.18 g/t. The recovery rate is listed as 93 per cent.

Raised funds are also set to be used to pay back short term loans to associated entities of the company Chairman, Stephen Copulos. As well as to assist with the costs of day to day operations.

Subject to shareholder approval at the next general meeting, the entitlement offer will be partially underwritten to the sum of $3.5 million by Eyeon Investments, which Chairman Copulos holds an interest, and $1million by Pinnacle Corporate Finance.

The entitlement offer will be available for all shareholders with registered addresses in Australia, New Zealand and the United Kingdom. Who are registered before 5pm WST, 28 May 2019.

An attaching option will be available for shareholders for every three new shares they gain during the entitlement offer, at $0.02 each.

The company also operate the Juruena and Novo Astro Gold Mines alongside the Manga Lithium project in Brazil, which they said some funding may also go towards.

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