Crusader Resources raises $16.2 million
THE BOURSE WHISPERER: Brazil-focused Crusader Resources has completed a $16.2 million capital raising.
Funds raised by the placement will be put towards an aggressive exploration and evaluation program on the company’s Borborema gold project.
The raising will also fund the completion of a definitive feasibility study should one be commissioned by the company.
The capital raising is the result of the placement of 13.5 million shares at $1.20 per share made to institutional and sophisticated investors.
“The demand from the market has been overwhelming,” Crusader Resources managing director Rob Smakman said in the company’s ASX announcement.
“We thank our existing key shareholders for their support and welcome the participation of new institutional investors.
“The fund raising allows Crusader to confidently fast track Borborema well into 2012 and will be directed at further resource drilling to increase the current 1.86M ounce Indicated and Inferred Mineral Resource, sterilization drilling, accelerate regional exploration and positions the company to make investment decisions for long lead time equipment.”
Borborema is one of two gold projects Crusader has in Brazil, the other being the Jurú-Belem project.
According to Crusader the Borborema gold project is the most important gold project in the north east of Brazil boasting historical production of around 250,000 ounces.
Crusader updated the JORC compliant resource estimate at Borborema in June this year, at 0.5 grams per tonne cut-off, to:
21.49 million tonnes at 1.32 grams per tonne gold for 0.91 million ounces Indicated and 23.16 million tonnes at 1.28 g/t gold for 0.95 Moz Inferred.
This combines for an Indicated and Inferred resource estimate of 44.65Mt at 1.30g/t gold for 1.86 Moz.
Crusader is also readying itself to become Australia’s latest iron ore production company as it awaits the commencement of production at its 100%-owned Posse iron project.
“The project is located in the Iron Quadrilateral region of Minas Gerais state, Brazil and is a low capital cost project with no infrastructure bottlenecks and simple logistics,” Crusader said in its announcement.
Posse contains an Indicated Mineral Resource of 4.83Mt at 47.39% iron and an Inferred Mineral Resource of 31.18Mt at 42.89% iron.
Crusader also has an extensive portfolio of gold, tin, indium, REE and tungsten projects within Brazil.
In Australia, Crusader owns 100% of the Lake Throssell uranium project, which it described to be, “a highly prospective project”.
The Lake Throssell project covers over 2,500 square kilometres and is located 200 kilometres to the north east of Laverton in Western Australia.