Capricorn Metals

Capricorn Metals $10.1m Equity Raising

Highlights

  • Underwritten accelerated pro-rata non-renounceable entitlement offer to raise approximately $10.1 million
  • Approximately 156.1 million shares to be issued at an issue price of $0.065 per New Share
  • Equity Raising will enable Capricorn to support activities at the Karlawinda Gold Project, including the relocation of the recently acquired accommodation village and mining infrastructure facilities and to continue exploration programs.
  • Subsequent to the completion of the Entitlement Offer the Company intends to reopen the virtual data room (ASX Announcement 2 April 2019)

Capricorn Metals Ltd (ASX: CMM) (Capricorn or the Company) is pleased to announce the launch of a $10.1 million equity raising.

Capricorn will be conducting an accelerated pro-rata non-renounceable entitlement offer of one (1) new fully paid ordinary share (New Shares) in Capricorn for every five (5) existing shares held at 5.00pm (Perth time) on Monday, 8 April 2019 (Record Date) at an issue price of $0.065 per New Share (Issue Price) to raise approximately $10.1 million (Entitlement Offer or the Equity Raising). The Equity Raising is fully underwritten by Argonaut Capital Limited (Underwriter).

Approximately 156.1 million New Shares are anticipated to be issued under the Entitlement Offer. Each New Share issued under the Entitlement Offer will, from its issue date, rank equally with existing Capricorn shares on issue. Upon completion of the Entitlement Offer, Capricorn will have approximately 936.5 million Shares on issue.

Based on Capricorn’s closing share price as at 3 April 2019, the Issue Price for the Equity Raising represents:

  • a 19.6% discount to the theoretical ex-rights price;
  • a 22.6% discount to the last traded price of Capricorn shares; and
  • a 19.5% discount to the 5-day volume weighted average market price of Capricorn shares.

The proceeds from the Equity Raising are intended to be used to fund:

  • Exploration programs and fixed costs (~$3.67m)
  • Relocation of accommodation village & mining infrastructure facilities (~$2.04m)
  • Project financing costs (~$1.50m)
  • Corporate, administration and capital raising costs and general working capital (~$2.9m)

Eligible investors will be invited to participate in the accelerated institutional component of the Entitlement Offer (Institutional Entitlement Offer), which is expected to close on Friday, 5 April 2019.

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