Sponsored

Black Canyon (ASX: BCA) advances with AU$0.85M placement for manganese projects

July 29, 2024 10:59 AM AEST | By Sonal Goyal
Follow us on Google News: https://kalkinemedia.com/resources/assets/public/images/google-news.webp

Highlights

  • A placement of AU$0.85 million has been completed with support from institutional and sophisticated investors.
  • The funds raised will be used to undertake development studies and exploration across the company's manganese assets.
  • Directors intend to participate in the placement by subscribing for AU$100,000, subject to shareholder approval at a general meeting.
  • A Share Purchase Plan (SPP) will be announced to raise AU$0.5 million.

Black Canyon Limited (ASX:BCA) is conducting a two-tranche placement to raise AU$0.85 million through the issue of nearly 12.1 million shares at AU$0.07 per share. The placement has garnered support from Australian Resource Investment Funds and existing sophisticated investors.

The proceeds from this capital raise will primarily fund development studies and exploration activities across the company’s manganese portfolio. This will include optimising the manganese concentrate flowsheet through metallurgical studies, conducting related feasibility assessments and drilling the high-grade Wandanya manganese target.

Additionally, funds will be allocated to advance the High Purity Manganese Sulphate (HPMSM) strategy, which involves further hydrometallurgical testwork and location assessments.

Details of the AU$0.85M placement

The placement involves an offering of 12.14 million shares and 6.07 million options. The issue price of AU$0.07 represents a discount of 15.4% to the 5-day VWAP and 19.6% to the 30-day VWAP, prior to the trading halt announced on 25 July 2024.

The first tranche of the placement comprises 5.4 million shares, with the second tranche consisting of 1.43 million shares along with the attaching options.

BCA directors have committed to participate in the placement, subscribing for AU$100,000 worth of shares. The participation of directors and the issuance of attaching options, both depends upon shareholder approval.

Participants in the placement will get one attaching option for every two shares subscribed. These options have a strike price of AU$0.14 and a term of two years.

Share purchase plan of AU$0.5M

In addition to the placement, the company plans to announce an AU$0.5 million SPP for its existing eligible shareholders who held shares on 26 July 2024. The SPP will offer terms similar to the placement, allowing shareholders to increase their holdings by up to AU$30,000 without incurring transaction or brokerage costs.

BCA shares traded at AU$0.080 apiece on 24 July 2024.

.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Two ASX Listed Stocks Giving Bullish Indications

Recent Articles

Investing Tips

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.