Sydney-based investment firm Cranport has taken a substantial stake in manganese explorer Black Canyon (ASX:BCA).
Cranport, which is a family office and predominantly focuses on Australian equities with a long bias, has acquired a 6.91% stake in Black Canyon following its participation in a recent capital raising.
Shares climbed 7.7% today (8 August 2024) to an intra-day high of $0.07.
Black Canyon, which has a market capitalisation of $5.3 million, in late July completed a placement to institutional and sophisticated investors which raised $850,000.
The funds will be used to advance further development studies and exploration activities across the company’s manganese projects, as well as continue high-purity manganese sulphate monohydrate development.
Cranport, which was founded in 2003 by Stuart Foster — who also established Foster Stockbroking about 30 years ago — invests in companies that have the “ability to grow and re-value or ‘re-rate’ their market capitalisation over time”.
The investor now owns about 5.6 million shares, of which around 2.9 million were acquired in the placement for $200,000.
Black Canyon is advancing the KR1 and KR2 deposits within its Balfour Manganese Field in the Pilbara region of Western Australia, which hosts a resource of 314 million tonnes @ 10.5% for 33.1 million tonnes of contained manganese.
The company’s projects span 2,100km2 in the east Pilbara, close to the operating Woodie Woodie and Butcherbird manganese deposits.
Write to Angela East at Mining.com.au
Images: Black Canyon
