PERTH (miningweekly.com) – Junior explorer Crusader Resources has raised A$5.5-million through a share placement, with the company announcing plans to issue about 55-million shares, at a price of 10c each.
The share placement would take place in two tranches, with the first 13.6-million shares being placed under the company’s existing capacity.
The second tranche placement of 41.3-million shares would require shareholder approval, and a meeting had been scheduled for April.
The shares would be placed to sophisticated investors, funds and high net worth individuals. Crusader stated that demand for the placement had exceeded the company’s expectation, reinforcing its view that its Brazilian assets had the opportunity to realise significant value to shareholders.
“It is acknowledged that the current market conditions for resources companies are tough, but to have generated such strong interest in this placement, in my view, speaks volumes for our assets, our strategy and what we plan to do to generate shareholder value over the short term,” said Crusader executive director Paul Stephen.
Crusader held a number of diversified assets, including in gold, iron-ore and lithium. The miner was currently producing iron-ore from its Posse mine, in Minas Gerais, and was developing two gold projects.