- Exploration company Classic Minerals (CLZ) has doubled its share price after successfully raising $1.2 million through a share placement
- Through the placement, the company issued 1.2 billion shares at 0.001 cents each
- Classic Minerals’ placement received an overwhelming response from investors, resulting in it being three times oversubscribed
- The proceeds will be used for advancing a transition to production, intensive and extensive drilling, and working capital
- Classic Minerals closed 100 per cent in the green for 0.2 cents per share
Exploration company Classic Minerals (CLZ) has doubled its share price after successfully raising $1.2 million through a share placement.
The company, which is working to transform into a gold producer, entered a trading halt on November 18, after announcing plans for a capital raise. Classic Minerals closed the successful share placement two days later on November 20.
Through the placement, the company issued 1.2 billion shares at 0.001 cents per share, raising $1.2 million in proceeds (before costs). Classic Minerals made the placement to professional and sophisticated investors, who subscribed for shares in overwhelming numbers.
The response to the capital raise was so significant, that it resulted in the placement being three times oversubscribed.
Classic Minerals attributed this avalanche of subscriptions to a number of factors which may have increased investor confidence in the company. These include the company’s prospect of near-term gold production, recent high-grade results, and highly prospective portfolio of exploration assets in Western Australia.
The company’s portfolio in WA currently includes the Kat Gap, the Forrestania Gold Project, and the JORC resource.
The Kat Gap is a high-grade shallow deposit that is on the fast track to gold production and early revenue streams. Classic Minerals has 100 per cent ownership of all gold and non-gold rights at the site.
Within the Forrestania Project, there are the Lady Magdalene and Lady Ada deposits. The Lady Magdalene is a large open pit deposit, while the Lady Ada is a smaller high-grade deposit.
The company has 80 per cent ownership of all gold rights in both of those deposits, with Hannan holding the other 20 per cent.
The $1.2 million in proceeds from the placement will primarily go towards progressing Classic Minerals’ transition to production, as well as intensive and extensive drilling. Some funds may also be used for the company’s working capital.
Classic Minerals closed 100 per cent in the green for 0.2 cents per share.