The non-renounceable entitlement issue is for up to 268,004,155 shares at 0.8 cents per share based on one share for every two shares held at the record date.
It also includes one free unlisted new option for every two new shares issued exercisable at 1.5 cents on or before February 28, 2023.
A shortfall offer is also being made for shares and options not subscribed under the offer, to which all eligible shareholders and general investors in Australia can subscribe.
Cervantes Corp advises that it will extend the closing date of the rights issue to 5pm (WST) on April 1, 2021.
The company is encouraged by composite resplit assays from reverse circulation (RC) drilling at its flagship Primrose Gold Project in the Yalgoo district of Western Australia that verify the original high-grade results.
Cervantes Corp completed various drilling programs at Primrose in the December quarter of 2020 which targeted three areas within the project area – Blue Heaven, Pansy Pit and the MMI gold anomaly.
Resampling was carried out to confirm the previously announced results and to define grades and intercept thicknesses of gold-anomalous samples that were originally composited at four-metre intervals.
Forty-three verification assays have been completed, the results of which confirm the original samples and provide focus in intercepts previously assayed with 4-metre composites.