Corazon Mining raising up to A$12.7 million supported by Blackstone Minerals A$2 million placement
Published: 18:41 02 Mar 2022 EST
Corazon Mining Ltd (ASX:CZN) is out to raise A$12.7 million to accelerate its nickel exploration and development activities.
The resources stock has secured firm commitments from fellow ASX-lister Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF) to raise A$2 million via placement at A$0.04 per share.
Corazon also hopes to bring in A$10.7 million through a non-renounceable entitlement offer, executed on a one-for-one basis at A$0.03 per share.
Through the cap raise, Blackstone will become a cornerstone investor, while major shareholder Delphi also plans to take up its entitlement.
Ultimately, Corazon hopes to establish a funding runway that will support exploration and development across its nickel sulphide portfolio in Australia and Canada.
The company hopes to recommence drilling at its Lynn Lake asset this month as mining and processing studies progress.
“Foundation of support”
Speaking to the raise, Corazon chair Terry Streeter said: “The Corazon share registry has evolved significantly over recent months, with nickel focused groups like Delphi and Blackstone seeking to cornerstone the company.
“This provides the foundations of support required to accelerate exploration and project studies on the potential re-development of the Lynn Lake Nickel Sulphide Project.
“We are also pleased to offer Corazon shareholders the opportunity to support the advancement of our nickel assets via the entitlement offer, at a time of strong nickel prices and increased demand for product from the emerging rechargeable battery sector.”
Placement
Under the placement, Corazon plans to isuue just more than 51 million ordinary shares at A$0.04 apiece — a 25% mark-up on CZN’s closing share price on March 2.
Shares are slated for issue on Friday, March 4.
Entitlement offer
Those who participate in Corazon’s non-renounceable entitlement offer will receive one new share for every security they currently own, priced at A$0.03 each.
This represents a 7.8% discount to the 15-day volume-weighted average price of CZN shares prior to March 3, as well as a 6.25% discount to the securities’ last closing price.
Corazon will issue up to 356.3 million new shares to its investors under the offer.
Of course, being non-renounceable, current shareholders cannot transfer their right to participate in the offer to another subscriber.
Use of funds
Corazon intends to apply funds from the placement and entitlement offer to:
- Exploration activities, including drilling and geophysics, at the Lynn Lake Project;
- Engineering and processing studies for the Lynn Lake Mining Centre;
- Resource definition drilling within the Lynn Lake Mining Centre
- Finalising the acquisition of the Miriam Project in WA;
- Initial exploration of the Miriam Nickel Project, including geophysical surveys and drilling; and
- Generative exploration works at the Mt Gilmore CopperCobalt-Gold Project in NSW.
