17/07/2020 - 15:00

Calidus in $25m raising

17/07/2020 - 15:00

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Aspiring gold producer Calidus Resources will begin early construction works at its flagship Pilbara project using the proceeds raised from a $25 million share placement.

Calidus in $25m raising
Calidus will begin early construction works at its Warrawoona gold project in the Pilbara. Photo: Calidus

Aspiring gold producer Calidus Resources will begin early construction works at its flagship Pilbara project using the proceeds raised from a $25 million share placement.

The company has taken a dual-strategy approach in developing its Warrawoona project that includes simultaneously installing access roads, undertaking front-end engineering design (FEED) and expanding existing exploration programs.

Managing director David Reeves said the capital raising would ensure a more rapid project development.

“By pushing ahead with early construction works, we can maximise our ability to capitalise on the strong gold price and begin to generate cash flow,” he said.

“At the same time, we can ramp up our exploration program, which has significant potential to create further value.”

The company earlier this month awarded Telstra with the works to provide communication at the Warrawoona site, as well as appointed Argonaut as its debt advisor.

Calidus has issued tenders for the construction of the tailings dam, processing plant and power station.

Under the placement, the company will issue about 49 million shares priced at 51 cents each, representing an 8.1 per cent discount to its 15-day volume weighted average price.

Shares in Calidus closed down 1.75 per cent to trade at 56 cents.

Meanwhile, fellow explorer Artemis Resources has launched a $5.6 million share placement to follow-up a previous drill campaign at the company's Patersons Central gold project.

Chairman Mark Potter said the funds raised would allow the company to pursue an expanded exploration program.

Artemis will issue 80 million shares priced at 7 cents each, representing a 12.5 per cent discount to the company's last traded price of 8 cents.

GTT Ventures and Taylor Collison are acting as joint lead managers to the placement.

Shares in Artemis closed up 1.25 per cent to trade at 0.81 cents.

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