Carnavale Resources Ltd (ASX:CAV) will raise A$2.64 million (before costs) in a placement that has been strongly supported by existing shareholders and introduces several new, high net worth overseas, sophisticated and professional investors to the share register.
Importantly, CAV directors Ron Gajewski and Andrew Beckwith have shown their confidence in the company and have committed to subscribe for a total of $400,000 which will be additional to and on the same terms as the placement and subject to shareholder approval.
Carnavale is a Western Australia-based resources company focusing on exploration and development projects with prospectivity for gold, nickel, precious metals and strategic minerals associated with the electric vehicle battery sector.
It has four exploration projects — Kookynie Gold Project, Ora Banda South Gold Project, Grey Dam Nickel Project and Barracuda Copper-Nickel-PGE Project — targeting high-grade gold and nickel sulphides close to Kalgoorlie in WA’s Goldfields.
Validation of asset portfolio
“We are extremely pleased with the strong demand from new institutional and sophisticated investors, I would also like to thank our existing shareholders for their strong continued support,” Carnavale CEO Humphrey Hale said.
“This is a validation of the asset portfolio we have assembled, coupled with our management team who has extensive knowledge of the projects and their potential.
"The placement puts Carnavale in a strong financial position to accelerate exploration programs across our tenure, in particular at Kookynie and Ora Banda where drilling is imminent.”
Placement details
There was strong support for the placement from overseas and Australian sophisticated and professional investors to raise $2.24 million, which will see CAV issue 203.64 million shares at $0.011 per share, together with 101.82 million free attaching options exercisable at $0.016 on or before July 31, 2023.
The placement is scheduled to close on or around February 15, 2022.
What to expect
Placement proceeds along with existing cash of A$2.06 million gives Carnavale the funds to execute its planned exploration strategy which includes:
- Testing for extensions of high-grade gold mineralisation at Kookynie;
- Better delineating gold targets along the 15-kilometre-long Carnage Shear Zone at Ora Banda; and
- Testing for nickel-copper sulphide mineralisation at Grey Dam.
The second 12,000 metres aircore drilling program at Ora Banda is planned to commence in February and follow-up RC drilling of approximately 4,000 metres at Kookynie is booked for March.