03/05/2021 - 15:00

St George, Caravel raise $15m for WA projects

03/05/2021 - 15:00

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Caravel Minerals will use $7.5 million raised from a share placement to fast-track the development of its namesake copper project in the Wheatbelt while St George Mining is raising $7 million.

St George, Caravel raise $15m for WA projects
Caravel will fast-track exploration at its namesake copper project in the Wheatbelt. Photo: Caravel Minerals

Caravel Minerals will use $7.5 million raised from a share placement to fast-track the development of its namesake copper project in the Wheatbelt while fellow explorer St George Mining is raising $7 million.

Caravel said proceeds from its raising, of which $7 million came from “a large institutional investor”, would be used to fund additional infill and extensional drilling at the company’s Caravel project, located 120 kilometres north-northeast of Perth.

The Subiaco-based business is also considering potential land acquisitions within the broader project area, including at the Bindi deposit where Caravel said recent work had identified significant resource implications.

“A key objective of this programme will be resource definition for higher-grade areas in the resource that may be brought into the early part of the mine planning schedules,” Caravel said, noting it was fully funded to complete pre-feasibility studies over the project.

About 27.8 million shares will be issued under the placement, priced at 27 cents each. It represents about a 10 per cent discount to Caravel’s last closing price.

Canaccord Genuity is acting as lead manager to the raising.

The institutional investment remains subject to shareholder approval, which Caravel expects to receive at a shareholder meeting in mid-June.

Its shares closed down 3.3 per cent on Monday to trade at 29 cents.

Meanwhile, West Leederville-based St George Mining will use $7 million raised from a placement to fast-track exploration at its Mt Alexander nickel-copper sulphide project in the north-eastern Goldfields.

Recent drilling results have highlighted compelling targets for further discoveries, St George Said, with high-grade nickel-copper-cobalt-PGE intercepts beginning at just 30 metres below surface.

Chairman John Prineas said the area was largely underexplored.

“Recent results from drilling and geophysical surveys at the West End and Investigators prospects have confirmed the potential for significant mineralisation at depth, below the shallow high-grade deposits already discovered,” he said.

“With this heavily oversubscribed placement, St George can now use its strong balance sheet to scope out the full mineral potential at the Mt Alexander project.”

St George upsized the placement by $2 million, due to “significant and high-quality investor demand”.

It will issue about 85.4 million shares priced at 8.2 cents each, representing about a 14 per cent discount to the company’s last closing price.

Argonaut and Canaccord Genuity are acting as joint lead managers to the raising.

St George said some of the proceeds would be applied to a maiden drill programme at its Paterson project, scheduled to begin later this month.

Its shares closed down 2 per cent on Monday to trade at 9.3 cents.

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