Carnavale Resources Ltd (ASX:CAV) has received firm commitments to raise $3.1 million in a placement along with director subscriptions to fast-track exploration at its Kookynie Gold Project in Western Australia.
The $2.7 million placement at $0.0045 per share has attracted strong demand from institutional and sophisticated investors following recent encouraging exploration results from the Kookynie Project.
In addition to the placement, company directors Ron Gajewski and Andrew Beckwith have committed to subscribe for up to a total of $405,000 on the same terms as the placement but subject to shareholder approval.
The proceeds, along with existing cash reserves, ensure that the company is well funded to execute the planned exploration strategy of testing for extensions of high-grade gold mineralisation and ultimately defining a high-value gold resource at Kookynie.
Demonstrate growth potential
Carnavale CEO Humphrey Hale said: “The recent spectacular results from the McTavish East Prospect demonstrate the potential to grow high-value gold resources within trucking distance to various existing third-party processing plants.
“Carnavale is pleased to report a very high level of demand for the placement, which was initiated following approaches by new cornerstone investors.
“The placement positions the company strongly and sets us up for a very busy and positive second half of 2023, where we will continue to drill and test for extensions of high-grade gold mineralisation at Kookynie.
“We are currently planning to infill and extend the high-grade gold zones and test beneath the other aircore anomalies further along strike.”
Capital raising summary
Carnavale has received support for the placement from overseas and Australian sophisticated and professional investors to raise $2.7 million via the issue of 600 million fully paid ordinary shares at an issue price of $0.0045 per share.
Argonaut Securities Pty Ltd has been appointed as lead manager for the placement.
Separate from the placement, Carnavale’s chairman Ron Gajewski and non-executive director Andrew Beck have also demonstrated their confidence in the company and its gold strategy.
Use of funds
Carnavale is now in a strong financial position to accelerate exploration campaigns, including further RC drilling, following up on the recent results at the Kookynie Gold Project.
Follow-up RC and diamond drilling will focus on infill and extensional resource delineation drilling of the high-grade gold shoots and new areas of bedrock gold mineralisation both along strike and at depth.
Furthermore, resource modelling and initial metallurgical test-work will continue as drilling progresses.