- Castle Minerals (CDT) has completed a heavily oversubscribed, $3.6 million placement
- The funds will boost Castle’s working capital to around $6 million
- The placement enables Castle to advance exploration and drilling programs across battery metals, base metals and gold properties in Western Australia and Ghana
- Shares in Castle were flat at 4 cents
Castle Minerals (CDT) has received firm commitments to subscribe for 120 million fully paid, new ordinary shares at an issue price of 3 cents per share, to raise $3.6 million before costs.
The placement was heavily oversubscribed.
Castle Managing Director Stephen Stone said the placement is a great start to the year.
“[The placement] will boost Castle’s working capital to $6 million, placing the company on a stronger footing to accelerate work at its Battery Metals projects in Western Australia and Ghana, and to drill in coming months several of the targets it has been defining at its Earaheedy, Beasley Creek and Polelle base metals and gold projects,” he said.
The placement price represents a 19.52 per cent discount to the 15-day volume-weighted average price on the ASX up to January 7.
Each new share will have an attaching option exercisable at 0.055 cents each, expiring in December 2024 on a 1:3 basis.
Peak Asset Management acted as Lead Manager to the placement. It will be paid a fee of six per cent on the funds raised, as well as 15 million options exercisable at 0.055 cents each, expiring in December 2024.
Shareholders can expect a strong news flow from the company in the coming months, covering the progress of Castle’s evolving projects.
Shares in Castle were flat at 4 cents at 1220 AEDT.