03/07/2019 - 09:53

Clark joins Capricorn, set to raise $18m

03/07/2019 - 09:53

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Shareholders have welcomed Capricorn Metals' announcement it is seeking to raise up to $18.3 million via a share placement and top-up issue, and that Mark Clark and Mark Okeby, both formerly of Regis Resources, have joined the board.

Clark joins Capricorn, set to raise $18m
Mark Clark will join Capricorn as executive chairman.

Shareholders have welcomed Capricorn Metals' announcement it is seeking to raise up to $18.3 million via a share placement and top-up issue, and that Mark Clark and Mark Okeby, both formerly of Regis Resources, have joined the board.

Shares in Capricorn soared 34.8 per cent on the announcement, to trade at 12 cents each at 11.15am AEST.

The $15 million share placement will be split into two tranches, both at an issue price of 6.5 cents each, with the first tranche comprising of $6 million.

The first tranche will be subscribed to by former Regis managing director Mark Clark for $4.5 million, and former Regis non-executive director Mark Okeby for $1.5 million.

Mr Clark will also join the Capricorn board as executive chairman, while Mr Okeby has been appointed as a non-executive director.

Capricorn non-executive chairman Douglas Jendry will become a non-executive director as part of the board shuffle.

A general meeting will occur in the near future for approval of $9 million worth of shares to be issued via a share placement.

In addition, major Capricorn shareholder Hawke’s Point will be offered $3.26 million worth of shares as a top-up, once the two tranches of the placement are complete.

Both the share placement and top-up have a price of 6.5 cents per share, which represents a 27 per cent discount to the last traded price of Capricorn.

Mr Jendry said the board recognised the very strong feedback from shareholders that, in the current gold price environment, Capricorn should develop its Karlawinda gold project itself to maximise shareholder value.

“To this end we are very pleased to have attracted two highly credentialed mining executives in Messrs Clark and Okeby to join the board and drive the development of the project,” he said.

“The funding secured through the placement also further bolsters Capricorn’s cash position and will allow the company to expedite the work required to progress towards development.”  

In April, the company rejected an unsolicited takeover offer from a consortium comprising Emerald Resources and Hawke's Point, which valued the company at 11 cents per share.

After the offer, the board opened a virtual data room to seek interest from other potential buyers, and today it said it had closed the room.       

Capricorn is aiming to develop its Karlawinda gold project in the Pilbara, for which it secured $107 million in project funding late last year.

In March, Capricorn Metals managing director Warren Hallam and chief financial officer Jonathan Shellabear resigned after two shareholders of the gold junior successfully ousted three of its directors.

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