23/04/2015 - 12:07

Cassini to raise $8m, names contractors

23/04/2015 - 12:07

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Maca and GR Engineering Services have become the preferred contractors for work at Cassini Resources’ Nebo-Babel nickel project while also committing to the mining company’s $8 million capital raising.

Cassini to raise $8m, names contractors
Cassini managing director Richard Bevan.

Maca and GR Engineering Services have become the preferred contractors for work at Cassini Resources’ Nebo-Babel nickel project while also committing to the mining company’s $8 million capital raising.

If formally awarded the contracts, Maca will provide mining and civil works at Nebo-Babel, while GR Engineering will construct a processing facility and provide ongoing study work.

The capital raising, which was brokered by Hartleys, comprises a $6.5 million placement (of 97 million shares) valued at 6.7 cents per share, with Maca and GR Engineering to subscribe for $2 million and $1.4 million respectively.

The price is a 16.25 per cent discount to Cassini’s last closing share price of 8 cents.

Cassini also announced it would offer shareholders the opportunity to participate in a share purchase plan to raise a further $1.5 million.

The proceeds of the placement will be used to complete a pre-feasibility study for Nebo-Babel, which the company says it is now fully funded for, and to progress exploration at its West Musgrave project (which includes Nebo-Babel).

“To have achieved such a strong response to the capital raising is great validation of the quality of the Nebo-Babel project,” Cassini managing director Richard Bevan said.

“We are looking forward to recommencing drilling at the West Musgrave project, including at Succoth, where the company sees great potential.”

Drilling at Succoth is expected to begin in June.

Last week, Cassini released a scoping study on Nebo-Babel that identified two development scenarios – a 4 million tonne per annum case with a pre-production capex of $435 million, and a staged case (starting at 1.5mtpa) with a pre-production capex of $264 million.

Cassini shares lost 6.2 per cent to 7.5 cents a share at 12pm.

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