Corazon Mining (ASX: CZN) will raise up to A$4.32 million through the placement of 36 million shares at $0.12 per share to progress ongoing drilling at its Lynn Lake Nickel Sulphide Project in Canada.
Funds will ensure strong continued news flow over the coming months from exploration activity and will also be used for general working capital purposes.
The placement is being completed in two tranches. Tranche one will consist of up to 15 million shares. The balance of up to 21 million shares will be issued in tranche two, subject to shareholder approval at a general meeting to be held in mid-December 2011.
Brett Smith, Corazon’s managing director, said “the strong take-up of this share placement is further good news for Corazon and its shareholders and demonstrates the significant investor interest being received by Corazon for its highly prospective Lynn Lake Project, on the back of recent significant nickel sulphide drill intersections."
Hartleys Limited was sole lead manager to the offer and Peloton Capital was co-lead manager.
Corazon has an option to acquire 100% equity in the Lynn Lake Nickel Sulphide Project in the central Canadian province of Manitoba, which hosts the EL Nickel Mine.
The Lynn Lake nickel camp is Canada’s third largest nickel mining region. The EL Mine was the highest grade mine in the district and produced 1.9 million tonnes at 2.5% nickel and 1.15% copper between 1954 and 1962.
Corazon announced the discovery of high-grade, semi-massive nickel/copper mineralisation below the EL Mine in June this year.
Corazon’s current exploration is focused on better defining the size and potential of the sulphide breccia mineralisation at the new discovery.
The region is well serviced with mining infrastructure and support, offering rapid development potential. The Thompson Nickel Refinery is located only 320km from the project and is accessible by all weather roads.
In addition there is rail access, which is currently under care and maintenance, to the Flin Flon zinc-copper concentrators about 250 kilometres to the south.