The agreement also includes PAC acting as lead manager in the placement of any potential shortfall under the SPP.
Capital raised will be used to accelerate exploration at the Mt Gilmore project in NSW, where Corazon has discovered a major new copper-cobalt-silver sulphide region.
Geochemical anomalies at Mt Gilmore point to an extensive hydrothermal event over several kilometres of strike, containing metal associations indicative of large intrusive-related copper-gold systems.
Next steps in the project’s exploration will aim to define drill targets within the large areas of anomalism.
The SPP aims to raise up to $1 million by providing eligible shareholders the opportunity to subscribe for up to $15,000 of shares at a price of 0.3 cents each.
Participants will be issued two free options for every three shares acquired, with the options exercisable at 0.7 cents each and expiring three years from the date of issue.
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Consideration for PAC’s underwriting and lead manager roles will comprise:
6% on the underwritten amount;
5% on any proceeds placed by PAC in the shortfall placement, excluding those by existing shareholders and investors introduced by Corazon, its directors or corporate advisors; and
An administration fee of 1% of total proceeds placed in the shortfall placement.
If a minimum of $600,000 is raised in the SPP, Corazon will also issue PAC 25 million options under the same conditions as the SPP.