Cyclone Metals Ltd (ASX:CLE) has bolstered the financial and corporate skillset of its board through the appointment of Luke Martino as a non-executive director with effect from July 23, 2024.
The appointment coincides with a capital raising totalling $7.2 million, which includes a placement to raise $1,874,234 before costs and a proposed underwritten rights issue for $5.4 million with the funds to support the advancement of the Iron Bear Project in the iron ore-rich Labrador Trough of Canada.
Cyclone Metals will convene a general meeting in September 2024 to discuss various resolutions, including a one-for-20 consolidation of its securities, which is a condition of the rights issue.
Corporate experience
Martino is executive director of Indian Ocean Corporate Consulting Group Pty Ltd, a boutique corporate and investment banking firm in Perth and Sydney, Australia, and is also non-executive chairman of EV Resources Ltd and non-executive chairman of Magnum Mining & Exploration Ltd.
The appointment of the Chartered Accountant, who was the lead partner of Deloitte growth solutions, is expected to assist Cyclone Metals in its growth strategy.
His success as a lead partner of Deloitte also saw him appointed to national executive roles and a board member for the national Australian firm.
Placement participation
Providing a show of confidence in the company and its strategy, Martino has indicated that he will support the $1,874,234 placement as part of a combined commitment of $60,000 from directors.
This will see Martino along with executive director and CEO Paul Berend and fellow non-executive director David Sanders participate in the placement subject to shareholder approval.
READ: Cyclone Metals placement secures funding to advance Iron Bear Project in Canada
The placement will result in the issue of approximately 2.34 billion fully paid ordinary shares in the company at an issue price of 0.08 cents per share together with one free attaching unlisted option for every two shares issued. The options have an exercise price of 0.16 cents each and will expire on November 30, 2028.
Placement options along with the directors’ participation and the rights issue are subject to shareholder approval at the company’s next General Meeting, which is expected to be held in September 2024.
The balance of the placement shares will be issued without shareholder approval as per the company’s available placement capacity under ASX Listing Rule 7.1 (1,226,675,735 ordinary shares) and 7.1A (1,041,117,156 ordinary shares).
Use of funds
Funds raised will be allocated to:
- progressing the Iron Bear project;
- working capital and administration expenses;
- retiring loans and other creditors; and
- conducting a strategic review of other mineral exploration assets.
Iron Bear, which is one of the world's largest iron ore deposits with a JORC-compliant mineral resource of 16.6 billion tonnes at 29.2% iron, benefits from proximity to key infrastructure, including a heavy haul railway and an iron ore export port.
Cyclone Metals aims to establish a joint venture with a Tier-1 miner or steel producer to bring the project to the decision-to-mine stage.
The technical team, led by executive director Paul Berend, is preparing to advance the project, with bulk samples expected to be available for steel mill clients during the current quarter.