Caspin Resources Ltd (ASX:CPN) has received firm commitments to raise $3.8 million via a well-supported placement from institutional and sophisticated investors at 30 cents per share.
The placement is cornerstoned by major shareholders including Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF), which subscribed for $400,000 worth of shares and will continue to hold about 9.2% of Caspin post-placement.
Funds raised will place the company in a strong financial position for upcoming exploration and drilling at the Mount Squires Project, along with the ongoing highly prospective Yarawindah Brook Project.
Moving forward, a share purchase plan (SPP) will also be undertaken to allow existing shareholders to participate in the capital raising on the same terms as the placement.
“Exciting exploration projects”
Caspin CEO Greg Miles said: “We are very pleased that this capital raising will enable the continued exploration of our exciting exploration projects.
“I’d like to thank our major shareholders for their continued support during these challenging market conditions.
“I’d also like to welcome new institutional and sophisticated investors to our company for the first time.
“The continued support from Chalice is an endorsement of the value in the Yarawindah Brook Project as well as recognition of the exciting potential of the Mount Squires Project in the revitalised West Musgrave Province.
“The company looks forward to receiving the remaining assays from recent drilling at the Serradella Prospect at Yarawindah Brook and commencing exploration at our Mount Squires Project over the coming weeks.”
Forward plan
This capital raising will enable Caspin to continue its exploration programs at the flagship Yarawindah Brook PGE-nickel-copper project as well as continue preparations for the upcoming field season at the Mount Squires nickel-copper-gold project.
The company has received the requisite approvals to kick off ground-based electromagnetic and soil geochemistry surveys, followed by reconnaissance drilling across a range of targets at the Mount Squires Project.
Further details about the upcoming programs will be released in the coming weeks.
Meanwhile, Caspin expects the remaining assays from the recently completed drilling program at the Serradella Prospect at Yarawindah to be returned over the coming weeks.