- Cauldron Energy will raise $1.6 million via the placement of 51,612,903 new fully paid ordinary shares
- Capital raised would be used to accelerate exploration at the Blackwood Gold Project, maintenance of Yanrey Uranium Project and for general working capital purposes
- Tentative date of completion of the Placement is 4 November 2020 with the shares to commence trading from the following day
Diversified minerals exploration and development company, Cauldron Energy Ltd. (ASX:CXU) announced the successful undertaking of placement of 51,612,903 new fully paid ordinary shares raising $1.6 million from the professional and sophisticated investors.
On 29 October 2020, CXU on ASX was up 43% with over 1.2 million shares on trade.
Under the Placement, the shares will be issued at a price of $0.031 (3.1 cents) per share, with SixtyTwo Capital being appointed as the Lead Manager to the Placement. The participants in the Placement will be issued free attaching unlisted options which can be exercised on or before 30 November 2023 at an option price of $0.05 (5 cents).
The options will be issued on the basis of 1 option for every 2 new shares under the Placement. The shares issued under the Placement are at a discount of -
- 3% against the latest closing price of $0.032 a share on 21 October 2020
- 15% compared to the 5-day VWAP of $0.0368 a share as on 21 October 2020
- 25% compared to the 15-day VWAP of $0.0411 a share as on 21 October 2020
Cauldron will use the proceeds to accelerate exploration at the Blackwood Gold Project in Victoria. The Blackwood Gold Project includes historical mining centres with a historical gold production of almost 220,000 ounces at ore grade in the range of 16 to 23 g/t Au.
The capital raised from the Placement will be utilised towards the maintenance of Yanrey Uranium project which holds an in-situ mineral resource of 38.9 million tonnes with a grade of 360 ppm eU3O8 containing 30.9 Mlb uranium oxideiii and for the general working capital purposes.
Terms of the Placement
In accordance with the terms of the placement, Cauldron will issue 51,612,903 shares at a price of $0.031 a share raising almost $1.6 million (before costs). The Placement Shares will be issued to professional and sophisticated investors without the shareholders’ approval within Cauldron’s capacity under the ASX listing rule 7.1 and 7.1A.
The Placement is anticipated to complete on 4 November 2020 with the trading of the newly issued shares expected from the following day.
In addition, the participants in the Placement will be issued with a total of 25,806,452 Options.
The lead manager will be entitled to a placement fee of 6%, which would be settled in shares and an incentive fee of 1 million options for every $100,000 raised. The lead manager and its nominees will receive 3,096,774 shares and 17,548,387 options as the placement and incentive fees following the completion of the Placement.
Cauldron Energy traded at $0.056 a share on 29 October 2020.
All financial information pertains to Australian Dollar unless stated otherwise.