THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has been buoyed by shareholder support during a recent Share Purchase Plan (SPP), which raised $834,000.
Cassini has undertaken a placement of approx. 4.6 million fully paid ordinary shares at 10 cents per share to raise $466,000 (before costs).
Cassini said it had received strong demand for the Shortfall Placement, which closed oversubscribed.
The Shortfall Placement shares will be issued on or around Friday 9 August 2013.
The total capital raised under the SPP and the Shortfall Placement is $1.3 million.
The Shortfall Placement was made to sophisticated and professional investors, including clients of Hartleys, Blackswan Equities, and Shaw Stockbroking.
Although directors of Cassini participated in the SPP, the company explained they were unable to participate in the Shortfall Placement due to timing restrictions associated with shareholder approval.
The funds raised from the SPP and Shortfall Placement will be used to:
– Progress the company’s 100 per cent-owned West Musgrave project beyond its current exploration program;
– Fund other ongoing exploration expenditure, to be used on a discretionary basis, depending on the results of the current exploration program at the West Musgrave project; and
– Strengthen the company’s balance sheet and provide for the general working capital requirements of the company.
Cassini has commenced the maiden drill program at West Musgrave, during which the company will be targeting the most advanced of its nickel and copper sulphide targets, the Pandora Target.