Corazon Mining Ltd (ASX:CZN) has received commitments from sophisticated and institutional investors to raise $3.4 million in funding through a share placement.
The oversubscribed placement was supported by the company’s major shareholder, Hanking Australia Investments Pty Ltd, who holds 11.54% of the company.
Placement shares will be issued at a price of $0.015 over two tranches.
Funding to advance cobalt and nickel assets
Funds raised will be used to progress both the Mt Gilmore Cobalt-Copper-Gold Project in New South Wales and the Lynn Lake Nickel-Copper-Cobalt Project in Canada.
Exploration at Mt Gilmore will target sulphide mineralisation at the Cobalt Ridge prospect.
The objective is to plan a drill program that leads to a maiden JORC resource estimate.
READ: Corazon Mining's Cobalt Ridge drill results prompt management to identify extensions
Drilling is also planned at new priority targets at Lynn Lake as well as work to complete a scoping study at the project.
A significant upgrade at Lynn Lake is planned including resource definition drilling and conversion of the current JORC 2004 resource to JORC 2012 standards.
Two exploration programs currently underway
At the Cobalt Ridge prospect within the Mt Gilmore project surface soil sampling geochemistry is underway.
Corazon is also preparing to conduct aerial and ground geophysical surveys at Cobalt Ridge.
This work will assist in defining new targets for the next phase of drilling planned for the June quarter.
At Lynn Lake, a drill rig is on site and drilling is expected to commence in the first two weeks of February.