Corazon Mining Ltd (ASX:CZN) has received validation of its nickel sulphide exploration strategy focused on Canada with a prominent German-based resources sector investor committing to a placement to raise approximately A$710,000.
Through the placement, Delphi Unternehmensberatung Aktiengesellschaf will lift its strategic equity holding in Corazon to about 19.99% and reinforce its position as largest shareholder.
These funds will be predominantly used to advance Corazon’s nickel-focused exploration activities at the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada, as well as for working capital.
Active resources investor
Delphi is an active, privately-owned institutional investor headquartered in Heidelberg, Germany, whose primary business objective is to invest its own funds into a portfolio of companies primarily in the resources sector.
As such, Delphi has made a number of strategic investments in ASX-listed exploration companies, including Corazon, and the latest investment continues to demonstrate its confidence in the company’s portfolio of nickel sulphide assets.
“Strong validation”
Corazon’s chairman Terry Streeter said: “Delphi’s engagement with Corazon has been very positive and provides strong validation for the quality and potential of our nickel assets.
"Delphi’s position provides us with a very strong share-registry, with the top 20 shareholders having more than 40% equity in the company.”
The placement consists of the issue of up to 20.25 million ordinary fully paid shares at an issue price of A$0.035 per share. These shares are anticipated to be issued on Thursday, December 23, 2021, under the company’s existing ASX Listing Rule 7.1A capacity.
Use of funds
"The funds raised allow us to commission geophysical surveys at Lynn Lake, which are critical for more detailed target definition and the restart of exploration drilling as soon as practicable in the New Year,” Streeter said.
"We welcome Delphi’s continued support of our nickel-driven project portfolio and our exploration approach to unlocking value at the Lynn Lake Project."
Priority drilling target
Recently completed drilling and geophysics at Lynn Lake has mapped a sulphide-rich feeder conduit for about 3.5 kilometres, which intrudes into the Fraser Lake Complex (FLC) within the Lynn Lake Project area.
This provides Corazon with an immediate priority drilling target at which drilling is planned for early in the New Year.
In Canada, Corazon has consolidated the entire historical Lynn Lake Nickel Copper Cobalt Mining Centre in the province of Manitoba, the first time Lynn Lake has been under the control of one company since mine closure in 1976.
Lynn Lake hosts large nickel-copper-cobalt sulphide resources and presents Corazon with a major development opportunity. This opportunity is becoming increasingly prospective due to recent increases in the value of both nickel and cobalt metals, and their expected strong demand outlooks associated with their core use in the emerging global electric vehicle industry.
FLC ‘sister plug’
Recent exploration has focused on the FLC, a 'sister plug' (mafic/ultramafic intrusion) to the nearby 'A Plug' that hosts the Lynn Lake nickel sulphide mining centre.
Drilling and geophysics at the FLC have identified a mineralised conduit (sulphide-rich magma channel) that can be traced 3.5 kilometres, before plunging into the centre of the FLC body.
The variation in geochemistry, sulphide composition and form noted in drilling along the conduit provides a vector to sulphide maturity and possible accumulation sites.
Modelling of geophysical data indicates that the mineralised conduit feeds into an area of high density within the FLC, a geophysical signature indicative of ultramafic rocks.
Of note within the Lynn Lake Mining Centre, ultramafic lithologies have a close spatial and timing association with massive nickel-copper-cobalt sulphide deposits.