Centaurus Metals (ASX:CTM) to raise AU$75M for Jaguar Project development

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Centaurus Metals (ASX:CTM) to raise AU$75M for Jaguar Project development

ASX, CTM, mineral resources, institutional placement
Image source: © Johnjewell | Megapixl.com

Highlights

  • Centaurus Metals to raise AU$75 million for the next development phase of the Jaguar Nickel Sulphide Project.
  • This announcement brings an end to the trading halt announced by the company on 19 January.

Mineral resources exploration company Centaurus Metals Limited (ASX:CTM) is raising AU$75 million for the next development phase of Jaguar Nickel Sulphide Project, located in northern Brazil.

This announcement brings an end to the trading halt announced by the company on 19 January 2021. After two days halt, CTM’s shares were down by 7%, trading at AU$1.19 with a market capitalisation of AU$460.40 million.

Centaurus Metals said that the company had received firm commitments from around 20 international institutional and high-quality Australian investors to participate in the institutional placement. It will also receive the support of existing substantial shareholders, including Harmanis Holdings, Dundee Goodman Merchant Partners, McCusker Holdings and affiliates of the Sprott Group.

The bids significantly exceeded the placement amount of AU$75 million, and bids were scaled to give due consideration to the strong demand.

Details of institutional placement

  • Under the placement, 64,655,172 new shares will be issued by the company at the offer price of AU$1.16 per share in a single tranche.
  • Argonaut Securities and Sprott Capital Partners would be the Bookrunners and Joint Lead Manager, and Euroz Hartleys would play the role of Co-manager in the placement.
  • The rank of the newly issued shares will be equal to the company's existing fully paid ordinary shares.
  • The new shares are expected o be allocated by 1 February 2022.

Use of proceeds

The company’s cash balance will increase to approximately AU$83 million. The funds will be employed for the development of the Jaguar Project in the following manner:

  • The definitive feasibility study will be conducted that will cover all development drilling, early-stage infrastructure work, process engineering and metallurgical test work.
  • Deferred acquisition cost
  • General working capital purposes.
  • To identify new priority targets, regional exploration drilling will be undertaken.
  • Also, funds will be used for financing activities and pre-development ahead of the Final Investment Decision on the Jaguar Project in Q3FY23.

Darren Gordon, MD of the company, commented on the development.

Bottom Line

With the JORC MRE update, Jaguar Project has become one of the significant nickel sulphide projects globally.

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