Cannindah Resources (ASX: CAE) raising AU$2M to advance exploration at Mt Cannindah

Highlights

• Eligible shareholders can apply for the new shares pursuant to the SPP at a subscription price of AU$0.10 under set amounts.
• The company intends to raise a maximum of AU$2,000,000 through the share purchase plan.
• The funds raised would advance exploration across Mt Cannindah project.

ASX-listed Cannindah Resources Limited (ASX: CAE) has announced a share purchase plan (SPP), eyeing to raise up to AU$2,000,000 (before costs). All the eligible shareholders are free to apply for the new shares pursuant to the SPP at a subscription price of AU$0.10 under set amounts, such as 25,000 shares for AU$2,500, 50,000 shares for AU$5,000, 100,000 shares for AU$10,000, 200,000 shares for AU$20,000 or 300,000 shares for AU$30,000. However, shareholders can subscribe for a maximum of AU$30,000 of new shares.

The company intends to raise a maximum of AU$2,000,000 through the share purchase plan. The proceeds from the SPP will be utilised by the firm to support exploration work at Mt Cannindah Project. It will also be used to support corporate costs and working capital.

Image source: Company update

Under this share purchase plan, existing shareholders can buy new shares at AUD$0.10 per share. This offered price is a discount of about 30% to the volume weighted average price for the previous 30 days.

Progress so far at Mt Cannindah

The company has completed geological assessment of exploration results available to date. It has successfully concluded targeted drilling at the site, gaining insights on the mineralisation style and potential. The results received so far are expected to help in further exploration of other prospects within the company’s mineral field holding.

Cannindah Resources has employed a nimble proactive exploration strategy, which has resulted in extensive drill intersections and newly defined zones of copper, gold, and silver mineralisation. As of now, the latest drill results are being processed and analysed. Assays from holes Cannindah 20 to 23 are still awaited.

Holes 21 and 22 tested gold mineralisation at Cannindah East a separate target 500m east of the Mt Cannindah Breccia. CAE has also completed Induced Polarization (IP) and surface soil sampling at a semi-regional scale.