Cauldron Energy Ltd (ASX:CXU) has raised $0.75 million in a placement managed by Everblu Capital.
The capital raise, which attracted oversubscriptions well beyond the $0.75 million target, ensures the explorer is funded to advance its suite of gold, uranium and sand projects.
Specifically, Cauldron will use the funds to complete an exploration program at its Blackwood Gold Project in Victoria.
The placement is expected to settle on March 15, with shares piqued to commence trade the following day.
“Strong support for unique commodity mix”
Commenting on the success of the placement, Cauldron executive chairman Simon Youds said he was pleased with the raising outcome.
“Cauldron is delighted with the strong response to the placement and strong support for the company’s unique commodity mix and strategic direction to simultaneously advance its gold, uranium and sand project interests.
“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, among many others.
“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.
“The Company’s Yanrey Uranium Project is world-class and has the potential to grow, while sand is a highly sought-after commodity and the company’s sand project provides it with exposure to this burgeoning industry.”
The fine print
Cauldron will issue slightly more than 44 million new ordinary shares to investors thanks to the $0.75 million placement.
Investors picked up the shares at $0.017 apiece, representing:
- An 11% discount to the five-day volume-weighted average price (VWAP);
- A 12% markdown from the 14day VWAP;
- A 16% discount to the 28day VWAP; and
- A 19% markdown from the last closing price of $0.021 on March 10, 2022.
In addition to their placement shares, subscribers will receive one new option for every three shares subscribed for, meaning Cauldron will distribute roughly 14.7 million options.
The options can be exercised on or before March 15, 2024, and carry a 3.4 cent exercise price.
The placement’s lead manager, Everblu Capital, is entitled to a placement fee of 6%, as well as 10 million options.