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Consolidated Zinc (ASX:CZL) enters trading halt ahead of capital raise

The Market Online Deal Room
ASX:CZL
11 February 2021 14:10 (AEST)

Plomosas Project. Source: Consolidated

Consolidated Zinc (CZL) has entered a trading halt ahead of an upcoming capital raise.

So far, it is unknown how much the company is aiming to raise and where the funds will be spent.

Under the halt, Consolidated shares will be paused until Monday, February 15, or when more information is released to the market, whichever comes first.

Consolidated owns the Plomosas mine, one of the world’s highest-grade, low-cost zinc mines in Chihuahua, Mexico.

Over the December quarter, the company commenced the refurbishment project at Plomosas.

The refurbishment and expansion of the Plomosas plant is to allow on-site processing and in-house management of plant operations.

During the period, workers were recruited and major equipment was purchased. The refurbishment project is expected to be completed later this month.

For the quarter, the company spent US$552 million (around A$714 million) on operating activities, with the majority of the cash spent on production.

At the end of the period, Consolidated had US$716,000 (approximately A$926,000) in the bank.

On the market, Consolidated last traded for 4.3 cents per share on February 10.

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