C29 Metals Ltd (ASX:C29) has closed a capital raising round, accumulating A$525,000 before costs in a well-supported placement.
The company will issue 7 million fully paid ordinary shares at 7.5 cents per share with the placement supported by sophisticated and professional investors.
C29 Metals intends to allocate the net proceeds predominantly for a maiden drill program at its Mayfield Copper-Gold Project in the Mt Isa region of northwest Queensland.
Additional funds will also be channelled into ongoing work at the Sampsons Tank Copper Project in the world-class Lachlan Fold Belt of central New South Wales and other ventures, as well as financing working capital.
Drilling at Mayfield
C29 is finalising plans for its maiden drill program at the Mayfield copper-gold exploration project in the world-class eastern fold belt of the Proterozoic Mount Isa Inlier.
The company’s reverse circulation (RC) program will comprise 2,800 metres of drilling across eight holes in the project area.
An induced polarisation (IP) survey has identified significant multiple chargeable and resistive anomalies over several of the previously delineated gravity and magnetic targets and was extended to cover strong chargeable anomalies heading north towards the Trekelano Mine pit.
The company is now progressing drill approval processes and drilling contractor engagement to undertake the planned activity.
Placement summary
The fundraising was conducted under the company's available capacity as per Listing Rule 7.1 on the ASX
The shares from the placement are expected to be issued on or around September 25, 2023, and will be on par with existing C29 ordinary shares listed on the ASX.
The offering price signifies a 16.7% discount compared to the last traded price.
ARQ Capital Pty Ltd acted as the lead manager for the placement.