Carnavale Resources Ltd (ASX:CAV) has unveiled plans to raise about $7.09 million through a placement and underwritten rights issue, setting the stage for an accelerated Bankable Feasibility Study (BFS) and board refresh as it moves its Kookynie Gold Project in Western Australia towards production readiness.
$3 million placement completed, rights issue to follow
The company has already received firm commitments to raise $3 million via a placement of roughly 857 million shares at $0.0035 per share, managed by Canaccord Genuity (Australia). Allotment is expected on October 20, 2025.
Eligible shareholders will soon have the opportunity to participate in a non-renounceable pro-rata entitlement offer to raise up to a further $4.09 million at $0.004 per share, with one free-attaching share for every seven subscribed. The offer will open on October 21 and close October 31, 2025, and will also be underwritten by Canaccord.
Directors Ron Gajewski and Andy Beckwith have each committed to take up their full entitlement and sub-underwrite for an additional $500,000.
The combined funds will be directed towards the immediate start of a BFS at Kookynie, where Carnavale aims to reach “shovel-ready” status in 2026.
'Next chapter' for Kookynie
Managing director Humphrey Hale said the raising follows a strong updated scoping study demonstrating the Kookynie Gold Project’s robust economics.
“Carnavale’s board has initiated this total $7.09 million capital raise to fund the next chapter in the development of the KGP that centres on completion of a bankable feasibility study,” Hale said.
“The company is already in discussions with mining contractors to determine the best way to unlock the contained value in the project,” he added. “We have already engaged the services of some experienced key personnel with proven track records in their field and are restructuring the board to reflect our mining intentions to take the project to a shovel-ready status.”
Scoping study underpins strong project economics
The recently updated study outlined a pre-tax NPV (8%) of about $188 million, internal rate of return (IRR) of 165% and undiscounted free cashflow of $237 million, based on a gold price of A$5,500 per ounce.
Other highlights include:
- Initial production target of 970,000 tonnes at 3.1 g/t gold for 93,000 oz recovered, including a bonanza 60,000 tonnes @ 28.3 g/t for 55,000 oz.
- Five-year mine life with capital payback in month 14 of operations.
- $3 million pre-production capital and maximum drawdown of $21 million in month 9.
- Around 50% of production from open pits, led by the Swiftsure pit (305,000 tonnes @ 4.32 g/t for 42,000 ounces).
The BFS will refine mine design, geotechnical and metallurgical parameters, hydrology, environmental studies, and engagement with Traditional Owners, with the aim of defining maiden open-pit reserves and finalising mining approvals.
Board restructure and new technical team
As part of Carnavale’s shift into development, the board will be restructured: Andy Beckwith will become non-executive chairman, succeeding Ron Gajewski, who remains as non-executive director.
Key appointments to support the BFS include Rod Smith (study manager, ex-De Grey Mining and Regis Resources), Allan Kneeshaw (consulting geologist, key contributor to De Grey’s 11-million-ounce Hemi discovery) and Bronwyn Campbell (ESG and community liaison, formerly with Rio Tinto and EY).
Capital consolidation and incentives
Following completion of the capital raise, Carnavale will seek shareholder approval for a 15-for-1 share consolidation to establish a more efficient structure. The board also proposes to issue performance rights and options to key executives and consultants aligned to Kookynie’s development milestones.
Upon completion of the placement, entitlement offer and consolidation, the company expects to have about 408 million shares on issue.