Cradle receives tranche, completes placement

Cradle Resources has tapped the investors to raise $3.6 million, while also receiving the first $US5 million tranche of payment as part of its divestment of a 50 per cent stake in its Panda Hill niobium project in Tanzania to Tremont Investments. 

Cradle completed the placement of 18 million shares at an issue price of 20 cents per share, with the proceeds to be used to pay existing creditors and provide a working capital buffer.

A 5 per cent fee is payable by the company on the placement monies raised.

Cradle will also allot about 19.5 million ordinary shares following the conversion of 18.7 million performance shares and 787,500 performance rights.

Conversion of the performance shares was conditional upon the completion of a scoping study, including metallurgical work and confirmatory drilling, which has since been completed.

Tremont has the right to make further subscriptions in tranches of US$5 million each, payable shortly after expenditure of previous funding.

The placement shares and the shares to be allotted upon conversion of performance rights will be issued under the company’s existing 25 per cent placement capacity.

Cradle's share price fell by 9.1 per cent to 20 cents at 2:20pm WST.