Carnavale Resources Ltd (ASX:CAV) (FRA:YBB) has completed its $2.1 million placement with the allotment of 300 million ordinary fully paid shares at $0.007 per share to high net worth overseas, sophisticated and professional investors.
Funds will be used to acquire the Barracuda Platinum-Palladium-Nickel-Copper Project Project, around 60 kilometres east of the gold mining town of Mt Magnet in WA, as well as fund the initial exploration work and provide working capital.
The initial exploration program will include an airborne EM survey and detailed review of the project geochemistry and aeromagnetics followed by subsequent drill testing of any defined targets.
Shares were issued under the company’s existing placement capacity under Listing Rule 7.1A (200 million shares) and Listing Rule 7.1 (100 million shares).
Acquisition terms
Carnavale is buying E58/551 from Corporate & Resource Consultants Pty and Bruce Legendre.
It paid a $10,000 non-refundable deposit, with the balance of $40,000 in cash and 20 million fully paid ordinary shares in the company, payable at settlement to the vendors.
Settlement will occur five business days after Ministerial consent has been granted for the transfer and the vendors have transferred the title of E58/551 to Carnavale.
Carnavale will also grant the vendors a 0.5% net smelter return (NSR) royalty on minerals produced from the tenement.
Exploration strategy
Carnavale intends to undertake initial fieldwork at the Barracuda project as soon as possible.
The proposed program includes;
- Fly the project area with airborne EM;
- Digitally capture the Pancontinental soil geochemistry and contour the PGE, nickel and copper data to define metal-anomalous trends;
- Follow-up airborne EM anomalies with ground EM, with priority given to areas with established, coincident PGE-copper-nickel soil anomalism; and
- Drill-test targets subject to results.