Cervantes Corporation Limited (ASX:CVS) has rallied on its ASX return, with shares trading as much as 375% higher to 1.9 cents over the course of today’s session.
The copper and gold explorer relisted on the local share market this morning and investors were eager to place buy orders for the materials microcap.
More than 135 million CVS shares changed hands on Friday, while company stock traded between 0.9 cents and 1.9 cents just before the weekend.
Approaching the market close, Cervantes stock was up 150%, trading at 1 cent per share.
Return to the ASX
Prior to its relisting today, Cervantes last traded in April 2019.
However, the explorer has returned to quotation following a recapitalisation, during which it raised nearly $3.37 million to repay debts and fund exploration at its Primrose gold asset in WA’s Eastern Goldfields.
Specifically, Cervantes raised more than $800,000 via a rights issue, $2.25 million under a share placement (before costs) and $312,500 by way of an options placement.
Now that it has completed its recapitalisation and relisted on the Australian Securities Exchange, Cervantes is doubling down and preparing for further exploration at Primrose.
All eyes on Primrose
Situated within the wider Paynes Find Goldfield in Western Australia, the Primrose Project is the focus of Cervantes’ current exploration endeavours.
The gold asset covers more than 8 kilometres of the Primrose Shear trend within the Murchison district, but has only seen limited and interrupted exploration to date.
To mitigate this, Cervantes intends to conduct two exploration drilling campaigns in the near term.
The first, a 15- to 25-hole reverse circulation program at the project’s Blue Heaven prospect, has been allocated between $250,000 and $300,000 under the company’s recapitalisation plan.
In addition, Cervantes has earmarked roughly $250,000 for a larger 30- to 100-hole campaign at Primose’s Pansy Pit prospect.
Board restructure
Ahead of today’s return to quotation, Cervantes opted to review its executive team and make some changes.
In late May, the gold and base metals explorer appointed Robert Downey as non-executive chairman while Matthew O’Kane stepped up as a non-executive director.
Both appointments coincided with the resignation of directors Collin and Justin Vost, while Patrick O’Neill stepped down from the company secretary role to make way for Chris Alchurch.
Speaking to the leadership changes at the time, incoming non-executive chairman Robert Downey said: “On behalf of the board and our shareholders I would like to thank Collin and Justin for their time and commitment to Cervantes over more than 10 years, leaving the company well-positioned to progress the company’s projects. We wish them every success in their future endeavours.
“The company looks forward to working with Justin over the next 12 months, assisting the company with a smooth and efficient transition.”