PERTH (miningweekly.com) – ASX-listed junior Capricorn Metals has raised A$12.6-million through a share placement to advance its flagship Karlawinda gold project, in Western Australia.
The company, previously known as Malagasy Minerals, said on Friday that it had placed 97.2-million shares, at a price of 13c each, to institutional and sophisticated investors.
The issue price represented an 8.5% discount to Capricorn’s five-day volume-weighted average price.
“This is a great result which reflects the quality of the asset we are developing at Karlawinda, the experience and capability of the team we have put in place, and the strength of our strategy, which is to become a low-cost, high-margin gold producer,” said Capricorn MD Peter Thompson.
The funds would allow the junior company to complete the current scoping study on the Karlawinda project by mid-year, and to fast-track resource and reserve-definition drilling, as well as to test a number of newly identified gold targets in close proximity to the existing resources.
The Karlawinda project hosts the Bibra gold deposit, which has an inferred resource of 18-million tonnes, grading 1.1 g/t gold for 650 800 oz of gold.