PERTH (miningweekly.com) – ASX-listed Capricorn Metals has again tapped the capital markets, raising A$18.26-million through the placement of more than 280.9-million shares, priced at 6.5c each.

The offer price represented a 27% discount to Capricorn’s last closing price, and a 24.5% discount to the five-day volume weighted average share price of the company’s shares.

The equity raising comprises a two-tranche share placement to raise an initial A$15-million, and a placement to shareholder Hawke’s Point that would raise a further A$3.26-million under its existing top-up right.

The first tranche of the placement will raise up to A$6-million through the issue of 92.3-million shares under Capricorn’s existing placement capacity, with the second tranche placement subject to shareholder approval.

The first tranche shares are being subscribed for by incoming directors Mark Clark, who will invest A$4.5-million, and Mark Okeby, who will invest the remaining A$1.5-million.

Both Clark and Okeby will be appointed to the Capricorn board as executive chairperson and nonexecutive director respectively, with Doug Jendry to step down from the role of nonexecutive chairperson, to nonexecutive director.

Clark has 28 years’ experience in corporate advisory and public company management, and was a director of gold miner Equigold from 2003, and was MD of the company from 2005 until its A$1.2-billion merger with Lihir Gold in 2008. He was appointed MD of gold miner Regis Resources in 2009, and was executive chairperson of the company in 2016, retiring from Regis in 2018.

Okeby, for his part, has a Masters of Law and over 30 years' experience as a director of ASX-listed mining and exploration companies. He is currently a director of Red Hill Iron, and has been a director of Metals X, Westgold Resources, Regis Resources and Lynas.

Jendry on Wednesday told shareholders that the appointment of Clark and Okeby would drive the development of Capricorn’s flagship Karlawinda gold project, in Western Australia.

“The funding secured through the placement also further bolsters Capricorn’s cash position and will allow the company to expedite the work required to progress towards development,” Jendry said.

The latest equity raise followed a A$10-million capital raise in April this year, which also supported activities at Karlawinda.