Caravel seeks cash to fund exploration

Caravel Minerals gone to the market to raise some extra cash as it seeks to develop its gold and copper acreage in WA and Queensland with a reunited management team from Dominion Mining.

The Perth-based company, which was formerly known as Silver Swan Group, announced a $1.9 million capital raising today, which has been partially underwritten by Cygnet Capital.

Caravel said it would launch a one-for-three rights issue priced at 1.5 cents per share, with a one-for-one free attaching option exercisable at 3.5 cents per share.

The funds will be used to advance exploration at Caravel’s Calingiri and Bryah copper-gold projects in WA, as well as the Wynberg gold project in Queensland.

Former Dominion managing director Peter Alexander was been appointed to Caravel's board late last month, while Domnion’s former general manager of exploration, Tony Poustie has also joined the company, as has finance executive Rowen Colman.

Mr Alexander headed up Dominion for ten years prior to his retirement in 2008.

Dominion was purchased in 2010 by gold miner Kingsgate Consolidated, in a transaction worth $376 million.

Caravel acquired its portfolio of eight exploration assets from Kingsgate in March this year.

Caravel chief executive Marcel Hilmer said the company felt fortunate to have acquired its portfolio of assets from gold miner Kingsgate Consolidated.

“Under this arrangement, Kingsgate will retain a substantial exposure to Caravel’s success while enabling us to use our skills and historical knowledge of these projects to maximise the opportunities,” Mr Hilmer said in a statement.

“Given the track records of the people involved with Caravel, it will come as no surprise to investors to hear that we are determined to build a substantial mining company based on exploration success.

“We intend to adopt a systemic but aggressive approach to exploration – as is rightly expected by investors who buy shares in exploration companies.”

Caravel shares last traded at 1.6 cents, prior to entering a trading halt on Tuesday.