PERTH (miningweekly.com) – ASX-listed Caravel Minerals will raise more than A$10-million in a share placement and share purchase plan (SPP) to fund feasibility work at its Caravel copper project in Western Australia.

Caravel on Monday said it had received firm commitments for the placement of 43.2-million shares, at a price of 22c each, to raise an initial A$9.5-million. The placement price represented a 15.4% discount to Caravel’s last closing price on July 26, and a 16.5% discount to the company’s five-day volume weighted average share price.

Caravel will undertake the share placement in a single tranche under its existing placement capacity.

Additionally, the company has also announced an SPP aimed at raising a further A$2-million, with eligible shareholders allowed to subscribe for up to A$30 000 of new shares in the company, also at a price of 22c each.

“We are delighted with the outstanding support received from both domestic and international institutions as part of this capital raising, which marks an important milestone in our strategy to advance the Caravel copper project towards development,” said MD Don Hyma on Monday.

“The strong response from investors both domestically and overseas reflects the scale and quality of the Caravel copper project as one of the few long-life copper development assets on the horizon globally, with the added attraction of being located in a Tier-1 jurisdiction close to world-class infrastructure and services. Copper is a metal which is front and centre of the global decarbonisation push – giving the Caravel project extraordinary leverage to this compelling thematic which is expected to gather significant momentum over the coming decade.”

Hyma said that the raising would ensure that Caravel had sufficient capital to progress key workstreams and maintain strong momentum over the coming months on the bankable feasibility study, which is targeted for completion in the first half of 2024.