CZR Resources (ASX:CZR) eyes $7M for WA project

• CZR Resources (CZR) receives firm commitments to undertake a two-phase placement to raise $7 million
• More than 607 million shares will be issued to sophisticated and professional investors at 1.15 cents
• CZR will also be offering eligible shareholders the right to participate in a share purchase plan to raise an additional $500,000
• The company to use the funds to advance its Robe Mesa Iron Ore Project in WA
• Shares in CZR are down 7.14 per cent and are trading at 1.3 cents at 12:12 pm AEST

CZR Resources (CZR) has received firm commitments to undertake a two-phase placement to raise $7 million.

The company entered a trading halt on June 3 but did not disclose how much it intended to raise or what it would use the funds for.

Under phase one, 347,826,100 shares will be issued to sophisticated and professional investors at 1.15 cents to raise $4 million.

Phase two, which is subject to shareholder approval, will see the issue of 260,869,600 shares to raise the remaining $3 million.

CZR will also be offering eligible shareholders the right to participate in a share purchase plan to raise an additional $500,000.

Shareholders will be able to subscribe for up to $30,000 worth of new shares at an issue price of 1.15 cents.

The plan is set to open on June 15, close on July 6 and shares to be issued on July 13.

CZR will use the funds from both the placement and share purchase plan to advance its Robe Mesa Iron Ore Project and other gold projects.

“The overwhelming response we received to this raising reflects the strong outlook for our projects, particularly the Robe Mesa iron ore project,” Managing Director Dr Rob Ramsay said.

“The proceeds mean CZR is fully-funded for its 2021 program and will ensure we can advanced the feasibility studies and approvals required to move Robe Mesa forward as quickly as possible, creating significant value for shareholders in the process.”

Shares in CZR are down 7.14 per cent and are trading at 1.3 cents at 12:12 pm AEST.