Cape Lambert Resources Limited (ASX:CFE) has in five days completed two placements of shares at 3 cents and 4 cents each to raise $790,000 in cash and to settle $134,800 due to creditors of the company.
The cash raised will be used towards funding its exploration activities at the Kipushi Cobalt-Copper Tailings Project in the Democratic Republic of Congo.
READ: Cape Lambert identifies potential high-recovery pathway at cobalt copper tailings project, shares up
Cape Lambert chairman Tony Sage said: “This is a very good result given the market conditions and shows confidence in our DRC and Zambian located copper/cobalt projects.
“The scoping study on Kipushi is almost complete and will be released within the next two weeks.”
Cape Lambert resolved to raise the capital by way of a placement to sophisticated and professional investors as this was considered to be the most expedient mechanism for raising funds in a timely manner.
Leaching test work recovered 95.8% for copper and 83.5% for cobalt
Recent test work at the Kipushi project indicated that the recovery of copper and cobalt in the flotation process would be in the order of 55% to 65% for copper and 40% to 50% for cobalt.
Given the positive leaching results, a separate leaching plant is being considering alongside the flotation plant.
The leaching plant would aim to produce a high-grade copper and cobalt hydroxide product.