Corazon Mining Ltd (ASX:CZN) has been granted a trading halt by ASX as it prepares to make an announcement regarding capital raising.
The halt will remain in place until the start of regular trade on Wednesday, September 15, or until an announcement is released to the market, whichever occurs earliest.
Option to acquire Miriam
The company is set to enhance its portfolio of nickel sulphide assets by way of an exclusive option to acquire the ‘high nickel tenor’ Miriam Nickel Project in Western Australia’s Goldfields.
The resource company is aiming to absorb 100% of the exploration asset through an option agreement with vendor Limelight Industries Pty Ltd.
Under this deal, Corazon can conduct exclusive due diligence at the nickel play for three months before electing to exercise an option and wholly acquire the project.
If it chooses to proceed, consideration for the project will total around $600,000 in capital while Limelight will retain a 2% net smelter return royalty on Miriam’s future output.