Highlights
- Black Canyon has received firm commitments to raise AU$1.95 million through a two-tranche share placement.
- Strong support from existing sophisticated investors with a cornerstone investment from Australian Resource Investment Funds.
- Directors applied for $170,000 in the Placement
- The funds raised will be used for undertaking exploration activities at the Balfour Manganese Field portfolio.
- The company will also direct funds towards High Purity Manganese Sulphate (HPMSM) hydrometallurgical testwork.
ASX-listed Black Canyon Limited (ASX: BCA) has announced a capital raise of AU$1.95 million before costs via a two-tranche placement. The placement has received significant support from existing investors with an investment from Australian Resource Investment Funds.
Under the placement, approximately 13.9 million new shares will be issued at AU$0.14 apiece. The placement includes a free attaching option to all the participants for every two shares allocated. The option's term is two years with a strike price of AU$0.28 per option.
The funds raised under the placement will be directed towards exploration across the company’s portfolio in the Balfour Manganese Field and furthering advancing High Purity Manganese Sulphate (HPMSM) testwork.
More about the placement
The issue price as mentioned earlier marks a discount of about 21.1% and 19.1% to the 15-day and 5-day VWAP, respectively, prior the trading halt on 19 June 2023, respectively.
It is to be noted that the company directors have applied for AU$170,000 in the placement.
Data source: company update
The funds would enable the company to advance further exploration and resources development activities across several high priority targets across its portfolio. The company is also focused on hydrometallurgical testwork involving HPMSM used in the cathodes of electric vehicle Li-ion batteries.