Carnaby Resources is set to raise $20 million to fund exploration activities at its gold and copper project in Queensland.
Carnaby Resources is set to raise $20 million to fund exploration activities at its gold and copper project in Queensland.
The Subiaco-based mineral resources company has received commitments for a $20 million non-underwritten placement.
Shares in Carnaby will be issued at $1.22 apiece, which represents a more than 4 per cent drop from its last close price of $1.47 on April 20.
Proceeds from the placement will be used to ramp up exploration activities across its portfolio of projects in Western Australia and Queensland.
Euroz Hartleys, Macquarie Capital and Petra Capital will act as joint lead managers and bookrunners to the placement.
Carnaby operates the Strelly, Pardoo and Goldsworthy gold projects and has an 80 per cent stake in the Mount Grant gold project in the Pilbara.
It also owns the Big Hill lithium project in the region.
Also in WA, Carnaby operates the Malmac and Throssel copper, nickel and gold projects in the Wheatbelt.
Carnaby said it also plans to use the funds for further exploration at the Greater Duchess copper and gold project in Queensland.
The company said it was working towards achieving a maiden mineral resource estimate by the third quarter of 2023.
Managing director Rob Watkins said Carnaby was pleased to have received strong demand for the placement.
“The investment from new and existing institutional shareholders is a further validation of the potential of the Mount Hope discovering, as well as the wider Greater Duchess copper and gold project,” he said.
“The proceeds from this placement puts us in a very strong position, with $31.8 million of pro-forma cash to accelerate exploration across the Greater Duchess project, with a focus on further drilling to support and grow a maiden mineral resource estimate in quarter three 2023.”
Carnaby shares were trading down 13.27 per cent at $1.275 at 12.14PM AWST.
