PERTH (miningweekly.com) – Junior Caravel Minerals will raise A$9-million to fund prefeasibility work at its Caravel copper project, in Western Australia.
The ASX-listed explorer has received firm commitments from institutional, sophisticated and professional investors for the placement of 56.25-million shares, at a price of 16c each.
The shares will be placed under Caravel’s existing capacity.
The company on Wednesday said that funds would be used to complete prefeasibility work at Caravel, and to fund exploration at the company’s other exploration projects, as well as for general working capital.
A 2019 scoping study estimated that the project would require a capital investment of A$481-million to develop an initial 16-million-tonne-a-year operation, which would ramp up to 30-million tonnes a year from year six.
The Caravel copper project is expected to produce around 45 000 t/y of copper in the first five years of operation, ramping up to 65 000 t/y following the expansion.
A prefeasibility study on the project is expected by the end of 2021.