Cannindah Resources (ASX:CAE) raises AU$5Mn for Mt Cannindah Copper-Gold drilling

Highlights

• Cannindah Resources has secured firm commitments to raise AU$5 million through a placement targeting new institutional and sophisticated investors.
• The funds will be allocated for drilling at the company’s flagship Mt Cannindah Copper-Gold project in Queensland.
• Drilling is set to begin soon to expand the substantial JORC Resource of 14.5Mt at 1.09% CuEq.

Cannindah Resources Limited (ASX:CAE) has announced a capital raising program of AU$5 million through a placement of 125 million new fully paid ordinary shares at an issue price of AU$ 0.04 per share. This placement has received strong backing from sophisticated and professional investors, with settlement set for 25 October 2024.

The funds will be directed towards exploration activities at the company’s Mt Cannindah Copper-Gold project and for general working capital. A new diamond drilling program is anticipated to commence in the coming weeks, aiming to enhance the project’s resource base.

Managing Director Tom Pickett expressed the board's satisfaction with securing the new equity capital, stating that it positions the company well to rapidly advance the Mt Cannindah project. The funds will facilitate a new drilling program to expand the existing resource and explore a promising target located approximately 700 metres southwest of the current resource area. With a substantial 14.5Mt Copper Gold Resource already established, Cannindah Resources aims to significantly grow this resource into a viable development asset, Pickett added.

The placement details

Drilling to expand current resource

Cannindah Resources is set to commence drilling aimed at expanding its substantial JORC Resource of 14.5Mt at 1.09% CuEq, which begins at the surface and remains open along strike and at depth.

Additionally, the company plans to drill test a significant IP anomaly located approximately 700 metres southwest of the Mt Cannindah Resource, which boasts a geophysical signature estimated to be more than double the size of the current resource area. Immediate exploration and further drilling will take place as soon as rigs can be mobilised to the site.

CAE shares were trading at AU$ 0.047, with an uptick of 2.17%, at the time of writing on 21 October 2024.