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The fundraising was prompted by existing major shareholders of Caspin, including Chalice Mining Ltd and Tinci Materials, who subscribed for $ 900,000 and $ 1.97 million, respectively.
Caspin Resources Ltd (ASX: CPN) has completed the first tranche of its $ 9.75 million capital raising initiative which has received strong support, including from major and long-term shareholders.
In the first tranche, Caspin issued 9,206,514 fully paid common shares at $ 1 per share to new and existing investors to raise more than $ 9.2 million.
The company is proposing to raise the remaining amount of approximately $ 540,000 after seeking shareholder approval at a meeting of shareholders that is expected to be called shortly.
Use of funds
Company plans to spend the funds to accelerate nickel-copper-PGE exploration at its flagship Yarawindah Brook project and advance its Mount Squires project
A 5,000 meter reverse circulation (RC) program is planned at Yarawindah Creek to monitor nickel-copper-PGE mineralization identified in a recently completed diamond drilling program.
Caspin has also identified new targets in the Mount Squires project, which he is working to test in the second half of 2021.
Following the placement, Caspin will have $ 15 million in cash, which will put him in a strong position to aggressively pursue both projects.
Support from existing shareholders
The placement was completed by existing major shareholders of Caspin, including Chalice Mining Ltd (ASX: CHN) and Tinci Materials (SHE: 002709) who subscribed for $ 900,000 and $ 1.97 million, respectively.
Chalice, which has a market capitalization of approximately $ 2.255 billion, will maintain its stake of approximately 9.2% after the placement.
Shenzhen-listed Tinci, which has a market capitalization of around $ 22 billion, will increase its stake to around 7.5% from 5.6%.
Discount to VWAP
The issue price of $ 1.00 per new share represents a discount of 5.7% from the last closing price of $ 1.06 on July 9, 2021, a discount of 8.6% from the average price weighted according to volumes (VWAP) over 5 days and a discount of 19.7% compared to the VWAP of 15 days until July 9 inclusive.
Ashanti Capital Pty Ltd acted as lead manager and Foster Stockbroking acted as co-manager of the placement.
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