Corazon Mining Ltd (ASX:CZN) is $7.6 million richer thanks to its latest entitlement offer.
The explorer issued nearly 254 million new shares at $0.03 each under the raise, bringing in $7,619,858 before costs to support exploration and development initiatives at the Lynn Lake Nickel Sulphide Project in Canada.
In conjunction with a $2 million placement completed in March, Corazon is funded to see out the next drilling chapter at its nickel sulphide asset.
“Aggressively pursuing exploration and development”
“We are delighted with the level of uptake for the entitlement offer from shareholders. In addition to our recent placement,” Corazon chair Terry Streeter said.
“Corazon is in a very strong financial position to aggressively pursue its exploration and development plans across our project portfolio, with a specific focus on advancing the headline Lynn Lake Nickel Sulphide Project, where drilling is currently underway.
“The company thanks all shareholders who participated in the Entitlement Issue for their continued support.”
Unlocking Lynn Lake
Corazon says the funds raised will support ongoing drilling and exploration at its flagship asset, where it is focused on making significant, new nickel sulphide discoveries.
Drilling is currently underway at priority targets at the Fraser Lake Complex at Lynn Lake. In parallel, Corazon is focused on its development plans for the historical Lynn Lake Mining Centre Project, and funds from the entitlement offer will be used for engineering and processing studies, and for resource definition drilling within the Mining Centre.
Funds will also be deployed to advance the Miriam Nickel Sulphide Project in Western Australia (once an acquisition is complete), and the Mt Gilmore Copper-Cobalt-Gold Project in northern New South Wales.
The offer will also provide general working capital.
Offer details
Under its entitlement offer, Corazon offered investors one fully paid ordinary share for every security held for $0.03 a pop.
Initially, the explorer offered investors roughly 356 million shares, creating a $10.7 million fundraise target.
After shareholders picked up 46.4 million shares under the shortfall offer, 102.3 million CZN shortfall shares remain.
The entitlement offer was not underwritten, so Corazon reserves the right to place the shortfall shares within three months of the offer’s closing date.
Shares are slated for issue on April 14, and they’re expected to commence trade after the Easter Break.