- Secures commitments worth $714,000 through an equity placement program
- Announces additional capital raising plans worth $964,000 through entitlement offer
- Proceeds to be utilised for Lynn Lake, Mt Gilmore exploration
- Flagship Lynn Lake holds substantial shallow and new Targets including Fraser Lake Complex
Corazon Mining Limited (ASX:CZN), a battery and base metals developer and explorer, on 1 July 2020 announced plans to raise capital to the tune of $1.678 Million via a placement and an entitlement offer. The capital raised would be used to progress on the Lynn Lake Nickel-Cobalt-Copper Sulphide project.
With the increasing demand for battery metals, Corazon focuses on the Lynn Lake Ni-Co-Cu project in Manitoba, Canada and Mount Gilmore Co-Cu-Au in the New South Wales, Australia.
The capital raised through the placement and entitlement offers would be utilised for the exploration activities at the Lynn Lake and Mount Gilmore project, general working capital and to cover any expenses associated with capital raising program.
Framework of the Placement and Entitlement Offer
The details of the share entitlement and placement programs are as follows-
Placement Program – Corazon has received firm commitments worth over $714,000 from sophisticated and professional investors for up to 356,984,000 fully paid ordinary shares at an issue price of $0.002 per share. Each share subscribed under the offer will be issued one attached option, contingent on the shareholder approval. The attaching option, if granted, will be exercisable at $0.0035 each on or before 30 June 2021.
The tentative date of issuance for the placement shares is 10 July 2020, compliant to the ASX Listing Rule 7.1. Corazon would seek approval from the shareholders at the general meeting to be held around August 2020, for the clearance on the attached options as part of the placement program. Corazon would be liable to pay a 6% commission on the funds raised under the placement offer to the securities dealers and Australian financial services licenses assisting during the placement.
Entitlement Offer – Corazon will also be undertaking a non-renounceable entitlement offer to issue 481.9 million new Shares at an issue price of $0.002 per Share. For every 5 shares held on the record date, a new share can be obtained to raise additional up to $964,000. Similar to the placement offer, the entitlement program would also offer 1 free unlisted attached option to be exercised at $0.0035 each on or before 30 June 2021.
The new equities upon listing on ASX will rank pari-passu with the existing fully paid ordinary shares. Any shortfall to the entitlement offer may be further placed by Corazon. Further, a prospectus with details on the offer is anticipated to be released by 3 July 2020.
Lynn Lake Advancing on Shallow Mineralisation and New Discoveries
The Lynn Lake project leads on multiple fronts and is presently advancing on the drilling program at the Fraser Lake Complex (FLC), a prospective zone almost 5 kilometres from the Lynn Lake mining centres. The Lynn Lake exploration program has been advancing on the set two-pronged strategy to maximise the mineral resources potential by uncovering the shallow mineralisation and identifying new prospective targets holding potential for bulk mineralisation. The target area within the FLC during the past drilling program uncovered bulk magmatic sulphide system.
The drilling program at the FLC is paused for now due to high water levels from the seasonal meltdown of the snow and the company anticipates recommencing the drilling program later this month. The drilling hole observed an increase in the sulphide content with depth (1-8% variation, 490 metres down-hole) and has reached the top of the targeted anomaly.
Corazon has utilised various geophysical techniques, processed and interpreted the datasets to streamline the targeting methodologies. Corazon plans to utilise the improved methods for further exploration and development of new deposits.
Corazon last traded at $0.002 a share with a market capitalisation of $4.82 million.
All Financial figures pertain to Australian Dollars unless stated otherwise.