Cassini raises $10m for West Musgrave

Cassini Resources has raised $10 million via a share placement with the proceeds earmarked for exploration activities its recently acquired West Musgrave nickel project.

Cassini announced last week that it had bought West Musgrave from BHP Billiton for $250,000.

The transaction sent the junior explorer’s shares soaring more than 400 per cent to about 22 cents each.

Cassini said today that it had raised $10 million in a strongly oversubscribed placement to domestic, international and sophisticated investors.

The company, which is chaired by former BC Iron boss Mike Young, said it would use the proceeds for exploration works at West Musgrave, which were anticipated to start in June.

Managing director Richard Bevan said the company expected to achieve a number of significant project milestones in the coming months to demonstrate the value of the project.

“Following the announcement of our acquisition of the West Musgrave project, we have been overwhelmed by the favourable response from investors, including a range of high-quality domestic and international institutional investors,” Mr Bevan said.

Hartleys is lead manager for the placement and Grange Capital Partners is co-manager.

Cassini has paid a 10 per cent cash deposit for West Musgrave and will provide the balance at the completion of the deal.

In addition to the $250,000, Cassini must also provide BHP Billiton with a 2 per cent net smelter royalty and a one-off $10 million payment after 12 months of production from the site.

The placement remains subject to completion of the acquisition, expected on May 2, and shareholder approval at a general meeting on May 16.