- Cauldron Energy (CXU) emerges from a trading halt revealing plans for a $750,000 placement
- Over-subscriptions were received for the placement which comprises over 44 million new fully paid ordinary shares issued at 1.7 cents each
- With the fresh capital Cauldron says it is able to advance exploration at its gold, uranium and sand gold projects
- In particular, most of the funds will go towards completion of drilling at the company’s Blackwood gold project in Victoria
- Shares resumed trade today, dropping 9.5 per cent to 1.9 cents
Cauldron Energy (CXU) has emerged from a trading halt revealing plans for a $750,000 placement.
Following a two day trading halt, the company said it had received over-subscriptions for the raise which will see over 44 million new fully paid ordinary shares issued at 1.7 cents each to sophisticated and professional investors.
The issue price represents an 11 per cent discount to the five-day volume-weighted average price of $1.92, and a 19 per cent discount to the last closing price of 2.1 cents on March 10 before the company entered a trading halt.
Placement participants will also receive free-attaching unlisted options exercisable on or before March 15, 2024, at 3.4 cents each.
According to the company, applications were received totalling significantly in excess of $750,000.
With the fresh capital Cauldron said it is able to advance exploration at its gold, uranium and sand gold projects.
Most of the funds are set towards completing the current exploration program at the company’s Blackwood gold project in Victoria, where drilling is targeting historical high-grade zones of the interpreted south-plunging Western Leader Reef.
Remaining funds will be applied for general working capital purposes.
Completion of the placement is expected to occur on March 15, with trading of the new Shares expected to occur the following day.
Everblu Capital acted as Lead Manager of the placement and is entitled to a placement fee of six per cent, plus ten million options.
Shares resumed trade today to close off 9.5 per cent lower at 1.9 cents at market close.