Cauldron Energy Ltd (ASX:CXU) has received strong validation of its strategy focusing on uranium, sand and gold projects with a heavily oversubscribed private placement raising $1.2 million.
There will be 35.29 million shares placed to sophisticated and professional investors at a price of 3.4 cents a share.
The placement attracted a strong response with lead manager 180 Markets Pty Ltd receiving applications totalling more than $2.7 million.
Cauldron plans to use proceeds from the placement to advance its suite of uranium, sand and gold projects.
“Delighted with strong response”
Cauldron’s executive chairman Simon Youds said: “Cauldron is delighted with the strong response to the placement and strong support for the company’s strategic direction to simultaneously advance its uranium, gold and sand project interests.
“The company’s Yanrey Uranium Project is world-class and has the potential to grow and the company’s Blackwood Gold Project in Victoria is located in Victoria’s ‘golden triangle’, a province that has clusters of high-grade gold mines, including Fosterville, Bendigo and Ballarat amongst many others.”
Highly prospective gold region
Youds said: “Victoria has produced an incredible 70 million ounces of gold to date, comprising 30% of all gold mined in Australia, and the Blackwood Gold Project is nestled in a highly prospective region with historic high-grade production.
“Sand is a highly sought-after commodity and the company’s sand project provides it with exposure to this burgeoning industry.”
Use of funds
The company plans to use proceeds from the placement to undertake passive seismic work at its Yanrey Uranium Project to identify potential extensions of the Bennett Well Uranium Deposit.
Funds will also be raised to pay rents and rates associated with the Yanrey Project along with completing the current exploration program at Blackwood Project, where Cauldron has started drilling.
Moreover, the company will also use funds to advance its sand project in Western Australia.
Placement details
The placement price of 3.4 cents a share represents a 15% discount to the 5-day volume-weighted average price (VWAP) of 3.86 cents and a 10% discount to the 15-day VWAP of 3.65 cents.
The ASX-listed company plans to issue shares to sophisticated and professional investors using the company’s capacity under the ASX listing rule 7.1
Cauldron plans to complete the placement on September 10, 2021, and trading of the new shares are expected to occur the following day.
The company will issue placement participants free attaching unlisted options exercisable with an expiry of November 30, 2023, at an exercise price of 5 cents.
These will be issued on the basis of one option for every two new shares subscribed for under the placement.