- Calidus Resources (CAI) receives firm commitments to raise $20 million via a share placement
- The funds will be raised via the issue of more than 29.85 million shares to professional and sophisticated investors at a price of 67 cents
- Calidus will use the money to undertake lithium exploration at the Pirra Lithium joint venture and expand the drill programs on gold targets within its Pilbara tenements
- Further, the money will be used to carry out early work for the Blue Spec Mine and the expansion of Warrawoona Mill to increase throughput to 100,000 tonnes per annum
- Calidus is down 10.5 per cent on the market with shares trading at 68.5 cents at 11:21 am AEST
Calidus Resources (CAI) has received firm commitments to raise $20 million via a share placement.
The funds will be raised via the issue of 29,850,747 shares to professional and sophisticated investors at a price of 67 cents.
This price represents a 12.4 per cent discount to Calidus’ close on August 9 of 76.50 cents and a 10.7 per cent discount to the five-day volume-weighted average price.
The company’s largest shareholder, Alkane Resources (ALK), have agreed to subscribe for three million dollars worth of shares.
Calidus will use the money to undertake lithium exploration at the Pirra Lithium joint venture and expand the drill programs on gold targets within its Pilbara tenements.
Further, the money will be used to carry out early work for the Blue Spec Mine and the expansion of Warrawoona Mill to increase throughput to 100,000 tonnes per annum.
“Operations at Warrawoona continue to ramp up well with nameplate production due during this quarter,” Managing Director Dave Reeves said.
“But with the initial cashflow committed to reducing debt, this additional capital will allow us to immediately accelerate our strategy to unlock our growth projects, which have potential to generate significant returns for shareholders.
“These growth projects include plans for drilling at lithium and gold prospects, commencing early works at Blue Spec and expanding the throughput of the Warrawoona Mill to treat fresh material at 20% above nameplate capacity.”
Calidus was down 10.5 per cent on the market with shares trading at 68.5 cents at 11:21 am AEST.