- Capricorn Metals (CMM) has entered a trading halt ahead of an upcoming capital raise
- Shares will stop trading until Wednesday or when the company announces more information about the raise
- Capricorn is currently developing the Karlawinda Gold Project in Western Australia
- Recently, the cost of developing the WA-based project has increased to between $165 million and $170 million — previous estimates had costs sitting between $145 million and $155 million
- This price includes modifications to facilitate a higher processing capacity and the construction of an airstrip
- At the end of the quarter, Capricorn had $45.7 million in the bank and spent $18.8 million on the Karlawinda project
- Company shares last traded for $2.06 per share on 24 July
Capricorn Metals (CMM) has entered a trading halt ahead of an upcoming capital raise.
It is uncertain how much the company is aiming to raise or what the funds will be used for. At this stage, company shares will be paused until Wednesday, or when CMM releases an announcement about the capital raise.
Capricorn has also released its June quarterly report and given an update on work at the Karlawinda Gold Project in Western Australia.
Developing the Karlawinda Gold Project
Recently, the cost of developing the WA-based project has increased to between $165 million and $170 million. Previous estimates had costs sitting between $145 million and $155 million.
This price includes modifications to facilitate the higher procesing capacity of up to five million tonnes of ore per annum (mtpa) and the construction of an airstrip.
Higher plant throughput
Capricorn also increased its crushing capacity at the project during the final design process. It is now expecting to process between 4.5 and five mtpa for the first three years, and up to between four and 2.5 mtpa in solely fresh rock ore in years four and beyond.
Airstrip
In addition, the company is building an airstrip for its staff. This will allow employees to arrive directly on-site via a charter airline service, rather than commercial airlines through Newman.
“With the potential to process up to five million tonnes of ore per annum in the first three years of the project, this should have positive implications for production, payback and overall project economics,” Chairman Mark Clark said.
June quarter 2020
At the end of the quarter, Capricorn had $45.7 million in the bank and spent $18.8 million on the Karlawinda project.
Capricorn has a $100 million debt and bank guarantee facility with Macquarie Bank. During the quarter, the company spent $2.5 million of that facility on the project.
Company shares last traded for $2.06 per share on 24 July.