06/02/2017 - 13:06

Capricorn secures funds for gold project

06/02/2017 - 13:06

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Aspiring gold miner Capricorn Metals has secured a $10 million investment from an overseas asset manager to fund ongoing work at its Karlawinda project near Newman.

Capricorn secures funds for gold project
Site work at Capricorn Metals' Karlawinda gold project near Newman.

Aspiring gold miner Capricorn Metals has secured a $10 million investment from an overseas asset manager to fund ongoing work at its Karlawinda project near Newman.

Hawke’s Point Holdings will take up a 14.9 per cent stake in Perth-based Capricorn through the placement of shares at 11.7 cents per share, with the funds to be used to fund study work at Karlawinda and cover costs up to a construction decision.

A definitive feasibility study on the gold project is due to be completed by mid-year.

As Hawke’s Point will becoming a substantial shareholder in the business, it will have the right to appoint a director to Capricorn’s board.

“After extensive due diligence, we believe Hawke’s Point shares our view that the Karlawinda project is one of the most attractive new gold development projects in Australia, and we are delighted that they have agreed to become our cornerstone shareholder by making this significant investment,” Capricorn managing director Peter Thompson said.

“The investment delivers a number of benefits for our shareholders, and provides access to capital on attractive terms.

“With a greatly strengthened balance sheet, Capricorn will be fully funded through to a decision to mine while also having much greater flexibility to expedite drilling of several near-mine targets we have identified in recent months.”

Tamesis Partners acted as agent and adviser to Capricorn on the placement.

Shares in Capricorn were 10 per cent higher to 11 cents each at the close of trade.

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