Corazon Mining Ltd (ASX:CZN) has received firm commitments for shares with a total value of up to $1.1 million through a placement to sophisticated and professional investors.
The company will issue up to approximately 315.8 million shares at an issue price of 0.35 cents per share.
Funds raised will be used to accelerate exploration activities at the Lynn Lake Nickel-Copper-Cobalt Sulphide Project in Canada.
Corazon chairman Terry Streeter said: “We are pleased with the support of investors for this placement and our plans to continue to advance the project.”
The new shares are intended to be issued on Wednesday, February 19, 2020, and include the issue of 107,036,473 shares under ASX Listing Rule 7.1 and 208,831,381 shares under ASX Listing Rule 7.1A.
Placement participants will also be issued one attaching option for every one share subscribed, exercisable at 0.7 cents each and with an expiry date of July 10, 2022 – subject to shareholder approval at a general meeting in late March.
Lynn Lake exploration
The results of drilling in December showed results at A ore body of 37.8 metres at 1.68% nickel, 0.67% copper, 0.050% cobalt from 10 metres including, 22.6 metres at 2.30% nickel, 0.82% copper, 0.068% cobalt from 24.4 metres.
Results at E ore body included 4.5 metres at 1.17% nickel, 0.22% copper, 0.029% cobalt from 25 metres and 4.1 metres at 2.09% nickel, 0.57% copper, 0.073% cobalt from 26.9 metres.
Streeter said: “The company’s renewed focus on the Lynn Lake project has continued to reap benefits, with our recent targeted drilling programs delivering multiple high-grade nickel sulphide intersections, which have further added to the expansion potential of the already substantial resource base delineated by Corazon.
“The funds raised under the placement will be utilised to undertake the next phase of drilling, and the drill rig is on-site, and drilling is scheduled to commence this month.”