PriceSensitive

Celsius Resources (ASX:CLA) locks in up to $2.8m through private placement

ASX News, Materials
ASX:CLA      MCAP $25.71M
22 December 2022 09:05 (AEDT)

This browser does not support the video element.

Gold and copper explorer Celsius Resources (CLA) has secured an investment of up to $2.8 million through a private placement to US-based fund manager Lind Partners.

Celsius on Thursday morning said the Lind Global Fund, a fund managed by the Lind Partners, had agreed to make an initial purchase of $1.3 million worth of CLA shares and unlisted options. The options are exercisable at 2.5 cents and will expire three years from their date of issue.

Under the terms of the deal, Lind has the option to provide another $1.5 million in funding to Celsius on terms to be agreed upon by both parties.

Celsius said it would use the cash boost to finance the development of its Maalinao-Caigutan-Biyog (MCB) copper-gold project in the Philippines, owned by subsidiary Makilala Mining Company.

“This private placement provides the company with an infusion of resources to lock in near-term opportunities and finance the development of the MCB project,” Celsius Executive Director Peter Hume said.

The company added that the Lind investment was a “positive step” towards obtaining other longer-term credit facilities currently under consideration and negotiation, though Celsius stopped short of providing any details about these potential facilities.

The MCB project lies in the Philippines’ Kalinga province and contains a mineral resource estimate of 338 million tonnes at 0.47 per cent copper and 0.12 grams per tonne (g/t) gold.

Celsius also owns mining assets in Namibia and Australia.

Shares in Celsius Resources last traded at 1.6 cents at 10:59 am AEDT.

Related News