Canyon Resources Limited (ASX: CAY) (Canyon or the Company) advises that the Company has agreed to place 100 million new fully paid ordinary shares at $0.10 per share to institutional and sophisticated and strategic investors to raise a total of $10m before costs (Placement).
- $10m placement to institutional, sophisticated and strategic investors
- Mr Peter Su welcomed as a new strategic shareholder, contributing approximately $5.6m of the Placement (representing a 9.4% shareholding in Canyon post Placement)
- Mr Su is a Perth-based strategic investor with a diverse range of business interests in Australia and overseas. The Su family have historically held commercial interests in bauxite and alumina refining in China
- Mr Su to be appointed to the board of Canyon
- Placement completed at a price of $0.10 per share, representing a discount of 19.9% to the 30 trading day VWAP
- The funds from the Placement will predominantly be used for:
- Delivering the DFS on the Minim Martap project;
- Corporate overheads and general working capital; and
- Advancing strategic project and off-take discussions.
Commenting on the completion of the Placement, Canyon CEO Phillip Gallagher said: “Canyon is very pleased to welcome Mr Peter Su and a number of new institutional investors to the register and recognises the continued strong support from our existing shareholders. The high level of demand for the Placement is a recognition of the strategic nature of the Minim Martap project”.
“We are also delighted to welcome Mr Peter Su to the Board of Directors. Mr Su has an extensive network of relevant business contacts in Australia and overseas regarding mining and mineral processing and has had a commercial interest in alumina refineries in China.” “This is an exciting time for Canyon as we are now funded to deliver the final feasibility studies and take the Minim Martap Project into the development phase.”
Mr Peter Su said, “I have invested in Canyon Resources as I believe the Minim Martap Project is the best bauxite opportunity in the world. My family has long been involved in bauxite mining and alumina refining in China and I am looking to leverage my high level contacts in the bauxite and alumina industries in Australia and China to develop the project as quickly as possible.”
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Image by Canyon Resources Limited