- CZR Resources (CZR) is raising up to $8.4 million to advance two of its projects in WA’s Pilbara region
- The money will be raised through a one-for-five renounceable entitlement issue with each new share priced at 1.2 cents
- CZR says the money will be used to complete a definitive feasibility study for the Robe Mesa iron ore project, as well as for exploration activities at the Croydon gold project
- CZR shares end the day 6.25 per cent in the red at 1.5 cents
CZR Resources (CZR) has launched a renounceable entitlement issue to raise up to $8.4 million.
The entitlement issue will offer eligible shareholders the opportunity to acquire one new share for every five shares held at 1.2 cents per new share.
Creasy Group, which owns a 55.28 per cent stake in the company, will be accepting at least $2 million of entitlements.
The company plans to use the funds to advance exploration and development activities at its Robe Mesa iron ore project and Croydon gold project, which are both located in Western Australia’s Pilbara.
“The renounceable entitlement issue will enable us to continue unlocking the value of the two highly promising projects we have in the Pilbara,” CZR Managing Director Stefan Murphy said.
“The Robe Mesa Iron Ore Project has a substantial inventory located between iron ore projects owned by Rio Tinto and Mineral Resources and we are on track to complete the definitive feasibility study (DFS) in the March quarter, 2023.”
As part of the DFS, CZR will update Robe Mesa’s mineral resource and ore reserve estimate, finalise a native title mining agreement and pit-port infrastructure access agreements, as well as complete a variety of studies.
The Croydon Project, which reportedly has a similar geochemical signature to de Grey Mining’s (DEG) 8.5-million ounce Hemi discovery, will be subject to survey work, modelling and diamond and reverse circulation drilling.
CZR shares ended the day 6.25 per cent in the red at 1.5 cents.