Capricorn Metals Ltd (ASX:CMM) is well positioned to advance its Karlawinda Gold Project in Western Australia to the next stage after raising $12.6 million from a strongly supported share placement.
The placement was undertaken to institutional and sophisticated investors at $0.13 cents per share, which represents an 8.5% discount to the 5-day volume weighted average price of $0.142 cents per share.
The funds raised will significantly strengthen Capricorn’s balance sheet, putting it in a strong position to fast-track the development of the Karlawinda Project, which has become the company’s only focus.
The proceeds of the raising will be used to complete the current scoping study (due for delivery by mid-year), as well as to fast-track resource definition drilling.
Capricorn will also test a number of newly identified gold targets in close proximity to the existing resource.
Earlier this week, the company announced further thick intercepts of up to 22 metres at 1.58 g/t gold from 171 metres depth at the Bibra deposit in Karlawinda.
The current reverse circulation drill program should handily increase the existing JORC 2012 resource of 18 million tonnes at 1.1 g/t gold for 650,800 contained ounces at the Bibra deposit.
Adding interest, Capricorn’s share price has increased by about 220% since February on the back of positive exploration results at the Karlawinda Project.
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