- Cygnus Gold (CY5) is set to raise C$5.5 million (A$6.3 million) to advance its Pontax lithium project in James Bay, Canada
- The company will raise the funds through the issue of more than 8.67 million fully paid ordinary shares to sophisticated and professional investors at a price of 73 cents each
- Subject to shareholder approval, company directors will subscribe for a further $400,000 worth of shares
- Cygnus will use the money to fund exploration at Pontax, with a 10,000-metre diamond drilling program expected to begin in early November
- Shares in Cygnus are up 4.55 per cent and are trading at 46 cents at 12:48 pm AEDT
Cygnus Gold (CY5) has received commitments to raise C$5.5 million (A$6.3 million) through a share placement to advance its Pontax lithium project in James Bay, Canada.
The company will raise the funds through the issue of more than 8.67 million fully paid ordinary shares to sophisticated and professional investors at a price of 73 cents each — a 66 per cent premium to the company’s last closing price.
Subject to shareholder approval, company directors will subscribe for a further $400,000 worth of shares.
The shares will be issued as Canadian flow-through shares, which provide tax incentives to investors for spending that qualifies as flow-through mining expenditure under the Canadian Income Tax Act.
Cygnus will use the money to fund exploration at Pontax, with a 10,000-metre diamond drilling program expected to begin in early November.
Mapping and rock chipping will also be undertaken to generate further drill targets, with lidar and geophysics to be completed at the recently acquired Pontax extension properties.
“Cygnus is now in an extremely enviable position, with an advanced lithium exploration project, a dominant land position in the heart of the world-class James Bay lithium district, $10 million in committed cash and drilling about to commence,” Executive Director Michael Naylor said.
“Previous drilling returned saw all 25 drill holes hit spodumene-bearing LCTs over 620 metres in strike length, and the company has since expanded its holding so we have more than 40 kilometres of strike with mapped pegmatites along a fertile greenstone belt.”
Shares in Cygnus were up 4.55 per cent and are trading at 46 cents at 12:48 pm AEDT