Corazon Mining Ltd (ASX:CZN) is raising up to $963,958 via a rights offer of shares at 0.2 cents each to progress exploration activities at the Lynn Lake Project in Canada and the Mt Gilmore Project in New South Wales.
The offer of one share for every five shares held at record date (July 9, 2020) will include one free attaching option for every share issued (exercisable at 3.5 cents each on or before June 30 2021).
The company has today extended the closing date to August 6, 2020 for shareholders wishing to participate in the rights offer.
Share placement
Corazon recently conducted a share placement for sophisticated and professional investors and received firm commitments of about $714,000.
Lynn Lake
At the Lynn Lake the nickel-copper sulphide project in Canada, Corazon is in the process of drilling an exciting geophysical feature at the Fraser Lake Complex, where they have recently discovered a big nickel sulphide system.
The Lynn Lake Project was previously put on hold due to the less than favourable nickel environment, however, this has changed after the price of nickel increased from US$11,055 per tonne in March 2020 to around US$13,500 currently.
Exploration is underway, testing new targets generated from a mix of geophysics, geochemistry and past drilling.
Mt Gilmore Project
Corazon is also looking to increase the exploration effort at the Mt Gilmore Project in New South Wales, where it has discovered some very large areas of copper-cobalt-gold-silver mineralisation.
These are district-scale geochemical anomalies that have never been drilling, in a new area of NSW.
The next phase of work will be trying to determine where best to drill, within anomalies that cover a trend of more than 20 kilometres.
“Highly exciting” discovery opportunity
Corazon chairman Terry Streeter recently said: “The company’s ongoing focus on the Lynn Lake project has continued to reap benefits with our recent targeted drilling programs delivering multiple high-grade nickel sulphide intersections, further adding to the expansion potential of the already substantial resource base delineated.
“The current phase of exploration drilling at Fraser Lake represents a highly exciting exploration and discovery opportunity and is testing new large geophysical anomalies in an area that we know is extensively mineralised.”