Capricorn Metals Welcomes New Cornerstone Investor

THE BOURSE WHISPERER: Capricorn Metals (ASX: CMM) announced a cornerstone $10 million investment by a leading international mining investment fund.

Capricorn Metals has entered into a binding agreement with Hawke’s Point, an international asset manager focused on the mining and metals sector, to subscribe for a $10 million placement in Capricorn shares at 11.7 cents per share.

The company said the deal would be a boost to its intentions of taking bringing its 100 per cent-owned Karlawinda gold project in Western Australia to production by next year.

Capricorn Metals said the investment from Hawke’s Point would will ensure the company is fully-funded through to completion of the current Definitive Feasibility Study and decision to mine, which is anticipated in Q3 2017.

It will also provide the capacity to accelerate exploration activities at the Karlawinda gold project with a view to further growing its resource inventory in the lead-up to first production.

“After extensive due diligence, we believe Hawke’s Point shares our view that the Karlawinda project is one of the most attractive new gold development projects in Australia, and we are delighted that they have agreed to become our cornerstone shareholder by making this significant investment,” Capricorn Metals managing director Peter Thompson said in the company’s announcement to the Australian Securities Exchange.

“The investment delivers a number of benefits for our shareholders, and provides access to capital on attractive terms.

“With a greatly strengthened balance sheet, Capricorn will be fully funded through to a decision to mine while also having much greater flexibility to expedite drilling of several near-mine targets we have identified in recent months.

“The agreed placement to Hawke’s Point is unanimously supported by Capricorn’s Directors, and we look forward to completing documentation for the investment and to getting on with the job of developing the Karlawinda gold project.”

Email: enquiries@capmetals.com.au

Website: www.capmetals.com.au