Corazon Mining Limited is set to raise approximately AU$2.6 million through Placement.
The funds raised will be used to execute the next phase of drilling at Lynn Lake and the potential acquisition of the Miriam Nickel Sulphide Project.
Currently, Corazon is completing due diligence on the project and is expected to share the outcomes in near future.
Shares of battery metals-focused exploration company Corazon Mining Limited (ASX:CZN) surged as much as 5.26% to trade at AU$0.040 per share, during the early trading session on 15 September 2021. The spike in the CZN share price came on the back of an upbeat announcement by the Western Australia-based miner, which stated that the firm has received firm commitments from institutional, sophisticated, and professional investors to raise approximately AU$2.6 million through Placement.
Two Tranche Placement
The premium battery metal player will complete the placement in two tranches. Corazon will issue up to 82,013,423 ordinary fully paid shares at an issue price of AU$0.032 per share.
Details of the two tranches are as follows:
Tranche 1 – In the first tranche, the metal explorer will issue up to 50,763,423 Shares, in line with the company’s placement capacity under ASX Listing Rule 7.1 and ASX Listing Rule 7.1A. The shares are anticipated to be issued on 22 September 2021.
Tranche 2 – The Company will issue approximately 31,250,000 Shares in the second tranche and will be subject to the approval of shareholders at the general meeting, scheduled in October 2021.
Peloton Capital worked as the lead manager to the Placement and will be entitled to a 6% commission on the raised amount.
Utilisation of Funds
The funds raised by the Company will be channelized towards Corazon's nickel-focused exploration activities with a focus to deliver shareholder value. Corazon will also earmark a significant portion of the raised fund for the next phase of drilling at Lynn Lake Nickel-Copper-Cobalt Sulphide Project, located in Canada.
Related Article: Corazon Mining Ltd. (ASX:CZN) kicks off mining studies at Lynn Lake
Interestingly, Corazon has already completed downhole geophysical test works at Lyn Lake’s Fraser Lake Complex, outlining priority targets along the strike. The nickel-focused explorer intends to commence drilling of the identified targets this month.
In addition to this, the Company also plans to use funds for the potential acquisition and working capital of Western Australia’s Miriam Nickel Sulphide Project. CZN in July 2021 entered into an option agreement to fully acquire the project.
Miriam is a highly prospective nickel exploration project which hosts Miriam Nickel deposits. The drilling at the project location since the late 1960s has encountered high nickel tenor, massive and disseminated sulphides. Corazon is currently completing due diligence on the project and is expected to share the outcomes in near future.