PERTH (miningweekly.com) – Junior explorer Cygnus Gold will raise A$8-million to fund its lithium hunt in Canada.
The ASX-listed company has received firm commitments for the placement of more than 18.18-million shares, at a price of 44c each, representing a discount of 10.2% to Cygnus’ last trading price. The shares will be issued under the company’s existing placement capacity and will not require shareholder approval.
Funds raised will be used for exploration activities at the Pontax and James Bay projects in Canada, as well as to fund exploration activities in Australia.
“In light of the outstanding results from our first three holes at Pontax, which doubled the known depth of mineralisation and discovered a new separate zone which potentially replicates Pontax to the north, Cygnus has decided to expedite drilling,” said executive director Michael Naylor.
“The results showed we have a huge opportunity at Pontax, with the mineralisation open in every direction. This raising will enable us to realise the value of this opportunity much faster. With a second drill rig secured and a third rig being sourced, the additional funding gives us the opportunity to rapidly define a hard-rock lithium resource in a Tier-1 jurisdiction with world-class infrastructure and several large hard rock lithium deposits.
“We will ramp up exploration, which will generate a consistent flow of drilling results from the 10 000 m drill program over the next six months,” he added.