Caspin Resources Ltd (ASX:CPN) has received firm commitments from major and long-term shareholders for a strongly supported placement that raised $9.75 million.
This capital raising will see the company issue 9,748,788 shares at $1.00 per share.
It was cornerstoned by Caspin’s existing major shareholders including Chalice Mining Ltd (ASX:CHN) and Tinci Materials (SHE:002709) who subscribed for $900,000 and $1.97 million, respectively.
Chalice, which has a market cap of approximately A$2.532 billion, will maintain its shareholding of about 9.2% post-placement.
Shenzhen-listed Tinci, which has a market cap of approximately A$22 billion, will increase its holding to around 7.5% from 5.6%.
The raising will enable the company to continue its accelerated nickel-copper-PGE exploration program at its flagship Yarawindah Brook Project and further advance its Mount Squires Project.
“Highly successful capital raising”
Caspin CEO Greg Miles said: “We are very pleased with what has been a highly successful capital raising for the company.
“The continued support from Chalice and increasing position of Tinci, along with strong support from existing, long-term and new investors reflects the exciting potential of the company’s projects.
“The company will hold approximately $15 million in cash, putting us in an excellent position to aggressively advance exploration at our Yarawindah Brook and Mount Squires Projects.”
Identified new targets
Caspin is preparing for a 5,000-metre reverse circulation (RC) program at its flagship Yarawindah Brook Project to follow up on the nickel-copper-PGE mineralisation identified in the recently completed diamond drilling program.
In addition, the company has also recently identified new targets at the Mount Squires Project which it is working towards testing in the second half of 2021.
After the placement, Caspin will hold $15 million in cash, placing it in a strong position to aggressively pursue the Yarawindah Brook and Mount Squires projects.
Rank equally with existing shares
The issue price of $1.00 per new share represents a 5.7% discount to the last closing price of $1.06 on July 9, 2021, an 8.6% discount to the 5-day volume-weighted average price (VWAP) and a 19.7% discount to the 15-day VWAP up to and including July 9.
Placement shares will rank equally with existing Caspin shares with the new shares to be issued utilising the company’s existing placement capacity under ASX Listing Rule 7.1 on or around July 22, 2021.
Ashanti Capital Pty Ltd acted as lead manager and Foster Stockbroking acted as co-manager to the placement.
- Ephrems Joseph