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Corazon Mining raising up to $1.35 million for further exploration at Mt Gilmore project

The company is also seeking shareholder approval for the issue of $250,000 worth of shares to increase its interest in the Mt Gilmore project from 51% to 80%.
Map of Mt Gilmore
Results from 2018 surface sampling provided evidence of an extensive hydrothermal event

Corazon Mining Ltd (ASX:CZN) has received firm commitments totalling up to $350,000 through a placement of up to 116.7 million fully paid ordinary shares at an issue price of 0.3 cents per share.

Participants will be issued two new options for every three shares subscribed for in the placement, with the company also planning a share purchase plan (SPP) to raise up to a further $1 million on the same terms.

Funds raids from the placement and SPP will be used to accelerate exploration at the Mt Gilmore Copper-Cobalt Sulphide Project in northern New South Wales.

 

Corazon managing director Brett Smith said the recent results from exploration at Mt Gilmore were very encouraging.

“They identify a district scale exploration play for large intrusive-related copper-cobalt-gold deposits and provides the company with a unique early stage copper driven opportunity in eastern Australia.

“We were keen to give our shareholders the opportunity to participate further in this next exciting phase of the project, via the SPP and in conjunction with the funds raised under the placement, the company will be in a position to commence its next phase of exploration at Mt Gilmore immediately.”

READ: Corazon Mining in a trading halt with capital raising news imminent

Under the SPP the Corazon is giving shareholders the opportunity to subscribe for up to $15,000 worth of shares, irrespective of the size of their shareholding.

Additionally, the company intends to increase its interest in the Mt Gilmore project to 80% by issuing $250,000 of shares to the Mt Gilmore vendors and will seek shareholder approval to do so at a general meeting in late May 2019.

Exploration program

Geochemical anomalies at Mt Gilmore were identified from surface sampling conducted in 2018, which included 3,983 soil samples and 230 rock chip samples.

Immediate exploration is aimed at defining drill targets within the large geochemical anomies and will include a strategy that addresses the following:

  • Ground truthing, geochemical mapping and testing of new priority targets and known copper deposits with the Mt Gilmore trend; and

  • Completing geophysical programs, including aeromagnetics and ground induced polarisation (IP) that will provide an initial test for near surface and concealed sulphide bodies and alteration zones.

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