West Perth-based Crusader Resources has announced it has completed a $4.2 million capital raising to fund its gold, iron ore, exploration and mine developments in Brazil.
West Perth-based Crusader Resources has announced it has completed a $4.2 million capital raising to fund its gold, iron ore, exploration and mine developments in Brazil.
Part of the raising (approximately $1.9 million) is earmarked to fund the purchase option of the Borborema Gold project, should the company decide to exercise the option.
"The support shown by the market has been overwhelming and we thank our existing shareholders and institutional investors for their participation," said managing director Rob Smakman.
"Crusader's strategy has been to focus on Brazil, a country which is vastly underexplored - yet has the high potential for the discovery of world class mineral deposits," he said.
Crusader will also offer existing shareholders, on the Company's share register on 1 July 2010, additional shares at $0.35 per share, under a Share Purchase Plan (SPP), to raise up to a maximum $1 million.
The SPP will open on 9 July.
See full company statement below:
Brazil-focused Crusader Resources Limited (ASX: CAS) has received strong support for a capital raising to fund its gold, iron ore and exploration and mine development programmes with a fully subscribed $4.2 million institutional placement completed yesterday. Patersons Securities acted as Lead Manager.
Proceeds from the raising will fund the Company's Brazilian activities and provide working capital. Part of the raising (approx $1.9m) is earmarked to fund the purchase option of the Borborema Gold project, should company decide to exercise the option. The final date that the option may be exercised is 31 July 2010.
Managing Director Rob Smakman said; "The support shown by the market has been overwhelming and we thank our existing shareholders and institutional investors for their participation".
"Crusader's strategy has been to focus on Brazil, a country which is vastly underexplored- yet has the high potential for the discovery of world class mineral deposits," he said.
"Iron ore production at Posse is now imminent and Crusader will enjoy the increase in spot price and demand for this resource as Brazil's population continues to expand."
The Company will also offer existing shareholders, on the Company's share register on 1 July 2010, additional shares at $0.35 per share, under a Share Purchase Plan (SPP), to raise up to a maximum $1M. The SPP will open on 9 July 2010 and full details will be announced in due course.
In addition to the SPP, the placement to institutional and sophisticated investors will be completed in two Tranches:
- Tranche 1 - 8,963,571 shares at $0.35 per share to raise $3,137,250 (before costs) will be issued under the Company's existing 15% placement capacity,
- Tranche 2 - 3,214,286 shares at $0.35 per share to raise $1,125,000 (before costs) will be issued subject to shareholder approval.
The issue price of $0.35 per share for the placement and SPP represents an 8% discount to the five day VWAP of $0.3793.
