15/08/2019 - 10:43

Calidus raises $9m for Warrawoona

15/08/2019 - 10:43

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Calidus Resources has completed a placement to raise $9 million, with the funds to go towards the development of its Warrawoona gold project.

Calidus raises $9m for Warrawoona
The Warrawoona gold project is located near Marble Bar.

Calidus Resources has completed a placement to raise $9 million, with the funds to go towards the development of its Warrawoona gold project.

Shares were issued at 3.2 cents per share, a 17.9 per cent discount its previous closing price.

Canaccord Genuity and Discovery Capital Partners acted as joint lead managers to the placement.

Together with existing cash reserves, Calidus said the placement ensured it was well funded to undertake an infill drilling program, complete a definitive feasibility study and purchase long lead items for project development.

Calidus managing director Dave Reeves said the equity raising followed the release of a pre-feasibility study for Warrawoona, located near Marble Bar, last month.

“Calidus is now well positioned to fund the next stage of growth through continued exploration success and project development at the Warrawoona gold project,” he said.

The PFS revealed that the project has a capex of $95 million and an estimated pre-tax net present value of $151 million at an internal rate of return of 40 per cent.

The company said it planned to have all approvals in place during the second half of 2020.

Shares in Calidus were down 10.3 per cent to trade at 3.5 cents each at 12.10pm AEST.

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