THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) has increased its fighting fund by the tune of $20 million via a share placement to professional and sophisticated investors through the issue of approx. 29.8 million shares at a price of 67 cents per share.
Calidus Resources said the placement resulted in new institutional shareholders joining the cause along with its largest shareholder, Alkane Resources (ASX: ALK), chipping in for $3 million in support.
The company has earmarked the proceeds of the Placement to be used to:
• Fund an expanded lithium exploration campaign on the Pirra Lithium Joint Venture;
• Costs associated with the proposed demerger of the Pirra Lithium Joint Venture that was announced in June.
• Gold exploration that will include: A Geophysical survey at Blue Spec West; Drilling programs at Blue Spec East, Blue Spec West, Marble Bar, Fieldings Gully and Klondyke Boulder; and Pursuit of potential earn-in’s on nearby known deposits held by third parties;
• Blue Spec early works including the finalisation of permitting, securing available accommodation units and installation of water and communications; and
• Warrawoona plant expansion works, aiming to increase current throughput by up to 20 per cent to 100,000 ounces per annum.
“I would like to thank existing shareholders for their continued support and welcome some new, high-quality institutions to our register,” Calidus Resources managing director Dave Reeves said in the company’s ASX announcement.
“Operations at Warrawoona continue to ramp up well with nameplate production due during this quarter.
“But with the initial cashflow committed to reducing debt, this additional capital will allow us to immediately accelerate our strategy to unlock our growth projects, which have potential to generate significant returns for shareholders.
“These growth projects include plans for drilling at lithium and gold prospects, commencing early works at Blue Spec and expanding the throughput of the Warrawoona Mill to treat fresh material at 20 per cent above nameplate capacity.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE