- Caspin Resources (CPN) is raising $9.75 million through a placement to fund exploration at its Yarawindah Brook Project in Western Australia
- The miner will issue about 9.74 million shares at $1 each which marks a 19.7 per cent discount to the 15-day volume-weighted average price
- The placement has received strong support from Chalice Mining (CHN) and Tinci Materials who subscribed for $900,000 and $1.97 million, respectively
- By doing so, Chalice will maintain its 9.2 per cent shareholding in Caspin and Tinci will increase its 5.6 per cent stake to 7.5 per cent
- Company shares are up 6.60 per cent to trade at $1.13 at 3:13 pm AEST
Caspin Resources (CPN) has received firm commitments from strategic, institutional and sophisticated investors to raise around $9.75 million.
The money will be raised through a placement which will include the issue of 9.74 million shares at $1 per share.
The issue price represents a 5.7 per cent discount to the last closing price of $1.06 on July 9, an 8.6 per cent discount to the five-day volume-weighted average price (VWAP) and a 19.7 per cent discount to the 15-day VWAP.
Positively for the miner, its existing major shareholders, such as Chalice Mining (CHN) and Tinci Materials, extended their support.
Chalice subscribed for around $900,000 to maintain is 9.2 per cent shareholding post-placement, while Tinci subscribed for about $1.97 million to increase its 5.6 per cent stake to 7.5 per cent.
Caspin Resources CEO Greg Miles was pleased with the successful capital raise.
“The continued support from Chalice and increasing position of Tinci, along with strong support from existing, long-term and new investors, reflects the exciting potential of the company’s projects,” Mr Miles said.
Caspin will use the funds to continue exploration at its flagship Yarawindah Brook Project in Western Australia. The company will conduct a 5000-metre reverse circulation drilling program to follow up on recently identified platinum group element-nickel-copper mineralisation.
The company also identified new targets at the Mount Squires Project in WA which it will follow up on later this year.
Shares in the placement are expected to be issued on or around July 22.
Company shares were up 6.60 per cent to trade at $1.13 at 3:13 pm AEST.