THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced the raising of $6.5 million via a placement of new shares to institutional and sophisticated investors.
The company said the placement, led by Hartleys, had been supported by existing Cassini shareholders, as well as adding a number of new investors to the company’s register.
The placement of approximately 97 million shares was undertaken at a price of 6.7 cents per share representing a discount of 16.25 per cent to Cassini’s recent closing share price of 8 cents.
Notable participants in the raising were MACA Limited, which committed to subscribe for $2 million and GR Engineering Services Limited and its related parties, who chimed in for a $1.4 million stake.
Cassini explained it has awarded MACA and GRES Preferred Contractor status with respect to the company’s Nebo-Babel project.
MACA is on board to carry out mining and civil works contracts, while GRES is to conduct ongoing study work and the processing facility construction contract.
“We are extremely pleased with the support that we have received for the Placement and are delighted to welcome this partnership with MACA and GRES,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.
“To have achieved such a strong response to the capital raising is great validation of the quality of the Nebo Babel project.
“This was demonstrated in our recently completed scoping study which demonstrated that Nebo-Babel is an exceptional project with low operating costs, a long mine life and substantial annual nickel and copper production.”
In addition to the Placement, Cassini will also offer eligible shareholders the opportunity to acquire new shares on the same terms as the Placement through a Security Purchase Plan to raise up to a further $1.5 million, which together with the Placement is anticipated to raise around $8 million.
Cassini indicated the proceeds of the Placement and SPP will be applied to:
The completion of a Pre-Feasibility Study for the Nebo-Babel project;
Selected targeting of known higher grade zones at Nebo-Babel;
Resource definition drilling at the Succoth prospect;
Drill testing of a DHEM anomaly at the Succoth prospect; and
General working capital purposes.
The company is due to commence field work at the West Musgrave project, including further geophysics and drilling of the EM anomaly at Succoth in June.
“We are looking forward to recommencing drilling at the West Musgrave project, including at Succoth, where the company sees great potential,” Bevan said.