Caspin in $9.7m capital raising

Caspin Resources has entered a trading halt while it completes a capital raising believed to be worth $9.7 million, with the proceeds to help fund the continued development of its nickel-copper projects.

According to a deal sheet, seen by Business News, Caspin Resources is hoping to raise the funds via a share placement at $1.00 per share, which represents a 5.7 per cent discount on its closing price.

The placement is being managed by Ashanti Capital, with Foster Stockbroking acting as co-manager.

The funds are set to facilitate further exploration of Caspin Resources’ two nickel-copper projects, Yarawindah Brook and Mount Squires.

Caspin inherited the two projects following its demerger from West Perth-based Cassini Resources, which was acquired by Adelaide’s OZ Minerals for $76 million late last year.

The capital raising comes more than a week after the company’s share price took a major dive, dropping from $1.95 to $1.03 following the release of disappointing drill results for Yarawindah Brook.

Shares in Caspin closed up 6 cents at $1.06 on Friday before the trading halt.