Corazon Mining Ltd (ASX:CZN, OTC:CRZNF) is bolstering its funds to accelerate exploration and increase resources at the Mt Gilmore Copper-Gold Project in northern New South Wales by way of a capital raising of up to A$1.34 million.
The raising comprises a placement and a share purchase plan (SPP) with firm commitments received totalling approximately A$340,000 through the placement to sophisticated and professional investors at A$0.0065 per share.
Corazon also proposes to raise up to A$1 million via an SPP by providing existing shareholders with an opportunity to subscribe for shares on the same terms as the placement.
May Queen drilling
Capital raising proceeds will enable Corazon to accelerate exploration at Mt Gilmore starting with the inaugural drilling of the May Queen high-priority target for a large porphyry copper-gold deposit.
The company has defined a new, high-priority porphyry copper-gold target at May Queen, which is a significant anomaly with a strike length of ~2 kilometres that possesses mineral chemistry analogous with other giant porphyry copper-gold deposits in NSW.
Exploration permits for Mt Gilmore have been received from the NSW Government for this work and the company will now complete site access and preparation for drilling, which is planned for July.
“To accelerate plans”
Corazon’s chairman Terry Streeter said: “I would like to thank new and existing shareholders for their interest in investing in the exploration of the company’s projects.
"This funding allows us to accelerate our plans to undertake a maiden drilling program at the exciting May Queen porphyry copper-gold target at the Mt Gilmore Project.”
Placement details
The placement consists of the issue of approximately 52.3 million shares at A$0.0065 per share, which is a 19% discount to the closing price of A$0.008 on June 13, 2024.
Placement shares are intended to be issued on Wednesday, June 26, 2024, under ASX Listing Rule 7.1.
Participants will also be issued one new option for every one share subscribed for, subject to shareholder approval.
Corazon will seek shareholder approval for the issue of these options at a General Meeting to be held in late July 2024.
The new options will be exercisable at A$0.01 each on or before June 30, 2027.
SPP details
Under the SPP, the company is giving eligible shareholders the opportunity to subscribe for up to A$30,000 worth of shares at an issue price of A$0.0065 per share, irrespective of the size of their shareholding.
Eligible shareholders are those registered as holders of shares on the record date of Monday, June 17, 2024, and who have registered addresses in Australia and New Zealand.
The company reserves the right to close the SPP early and scale back applications in its absolute and sole discretion should the total demand exceed A$1 million. The directors will have the right to place any shortfall in the SPP.
GBA Capital Pty Ltd, an independently owned Australian stockbroking and capital markets firm, with offices in Sydney and Perth, has been engaged as lead manager of the placement and the placement of any shortfall from the SPP.
GBA will provide ongoing support for Corazon and to clients introduced to the company by way of the placement and SPP.
About May Queen
May Queen is at the northern end of the +20-kilometre-long copper-cobalt-gold Mt Gillmore Trend, prospective for intrusion-related copper-gold deposits.
This target was identified by the Centre for Ore Deposit and Earth Sciences at the University of Tasmania, utilising highly reliable mineral chemistry vectoring methods.
May Queen displays favourable hydrothermal alteration along with coincident surface copper-in-soil and anomalous geophysical signatures.
Work program approvals for drilling have been approved by the NSW Government with Corazon preparing for the maiden program and addressing access requirements and drilling permit approvals.
Drilling is expected to commence early in the third quarter of 2024.
Lynn Lake progress
Meanwhile, at the Lynn Lake nickel-copper-cobalt project in Manitoba, Canada, Corazon is continuing mining and metallurgical test work programs.
Positive results returned to date from a number of processing technologies have led to an extension of the metallurgical test work program.
This phase of studies is anticipated to be completed next quarter and following this work, a fully optimised and scheduled mine plan will be generated for assessment.
The goal of these studies is to define the value of a nickel-copper-cobalt mining opportunity and set a pathway through to production.
Nickel, copper, cobalt and zinc are critical metals of growing interest in Canada and the US.
With the emerging dominance of nickel products from Chinese-backed Indonesian mining operations, North American battery and automobile manufacturers will struggle to secure sources of nickel that qualify for the benefits provided by the Inflation Reduction Act.
Miriam plans
At the Miriam Project in Western Australia, the company expects to complete work program approvals for drilling during the September quarter.
Earlier this year, Corazon divested an 85% interest in the Miriam lithium and industrial minerals rights to Future Battery Minerals Limited and retains 100% of the base and precious metal rights.
This transaction delivered initial cash and FBM shares to Corazon, with performance rights allowing the company to participate in any future upside from FBM’s exploration or development success at the combined Miriam and Kangaroo Hills lithium projects.
In addition to lithium pegmatite targets, Corazon has identified several targets along the basal contact of the ultramafic lithologies suitable for nickel sulphide mineralisation.