Catalpa closes raising oversubcribed

Catalpa Resources has reported its $23.4 million capital raising has been oversubscribed by strong demand from existing shareholders and new investors, just two days after it was announced.

On Tuesday Catalpa announced it was seeking the funds for the ongoing development of its Edna May gold mine in the Wheatbelt.

The raising was undertaken by a placement of about 15.1 million shares at $1.55 per share.

Catalpa Resources managing director said he was pleased with the response to the raising, which he said was a strong endorsement of Catalpa's five-year strategic growth plan.

"The proceeds of the raising, in addition to Catalpa's existing cash resources,
will ensure that Catalpa is in an excellent position to expand and accelerate
exploration drilling programs to further assess our high grade underground
opportunity at Edna May," Mr McFadzean said in a statement to the ASX.

"In addition, funds will also be used to advance several value-adding opportunities with tungsten and secondary crushing trials, regional acquisition opportunities, and reliability improvements to plant and utilities at Edna May."