Photo by: Bloomberg
PERTH (miningweekly.com) – Brazil-focused Crusader Resources has raised A$3.3-million through a share placement to fund accelerated exploration work at the Juruena gold project.
The share placement would be conducted in two tranches, with the first tranche consisting of about seven million shares, priced at 17c each, and placed within the company’s existing capacity.
The second tranche of more than 12.6-million shares, also priced at 17c each, would require shareholder approval.
The placement price represented a 20% discount to Crusader’s five-day volume weighted average price and a 19% discount to the company’s last traded price on March 30.
“The placement was keenly received by both existing and new investors domestically and internationally. The strong demand for the placement demonstrates the market’s ongoing commitment to Crusader and its future growth plans,” said executive director Paul Stephens.
He noted that existing shareholders would now also be given the opportunity to participate in the current round of capital raising, through a share purchase plan, under which shareholders could subscribe for a maximum of A$15 000 in new shares, also priced at 17c a share.
Crusader acquired the Juruena gold project from TSX-listed Lago Dourado in May last year, for C$650 000. The Juruena project consists of 21 exploration licences and applications and covers 44 702 ha. The project area has, historically, been subject to artisanal miners, with about 500 000 oz of gold removed from near-surface operations.