Cauldron Energy Ltd (ASX:CXU) has received firm commitments for a $1.6 million placement to new sophisticated and professional investors with funds raised to fast-track exploration at the Blackwood Gold Project in Victoria’s Goldfields.
The placement was well supported with shares to be issued at a price of 3.1 cents per share.
“Delighted” with strong response
Chief executive officer Jess Oram said: “Cauldron is delighted with the strong response to the placement and strong support for the company’s strategic direction which will focus on the Blackwood Gold Project in Victoria.
“Funds will be used to implement and fast-track well planned and systematic exploration of the project which is home to 15 historical production shafts and in excess of 250 underground workings, but which has seen very little in the way of modern exploration in the past 40 years.
“The work will commence once all approvals from the Victorian mines department is finalised and discussions with the community is completed.”
Placement details
SixtyTwo Capital acted as lead manager to the placement.
Pursuant to the terms of the placement, Cauldron will issue 51,612,903 shares to raise $1.6 million before costs.
In addition, participants will be issued free attaching unlisted options exercisable on or before November 30, 2023, at an exercise price of 5 cents.
The options will be issued based on one option for every two new shares subscribed for under the placement.
Funds will also be applied for maintenance of the Yanrey Uranium Project as well as for general working capital purposes.