Black Canyon (ASX:BCA) has received firm commitments to raise $10 million in a share placement to fund further exploration at the Wandanya Project in the Pilbara region of Western Australia.
The company will issue 23.8 million shares at an issue price of $0.42 per share, representing a 5.8% discount to the 10-day volume weighted average price (VWAP) as of 3 September.
Foster Stockbroking and Taylor Collison acted as the lead managers to this placement, receiving a 2% management commission and 4% selling commission from proceeds raised.
Black Canyon intends to expedite further reverse circulation drilling at the Wandanya Project, targeting ‘high-grade’ manganese and iron intercepts.
The company will also streamline diamond core drilling, metallurgical testwork, feasibility related studies, and other exploration activities across manganese tenements in its greater portfolio.
Managing Director Brendan Cummins says the placement was backed by multiple existing institutional shareholders, including Nero Resource Fund, Lowell Resources, and Perennial Natural Resources.
“The strength of placement demand underscores the increased confidence from the investment community in the quality of our Wandanya manganese and iron assets, and the potential across our broader manganese portfolio,” Cummins says.
Manganese is a key ingredient in aluminum alloys, lithium-ion batteries, and ceramics, but primarily used in steelmaking to provide strength, hardness, and wear resistance.
Trading Economics reports the commodity seeing a 3.17% increase in value across the year to date, priced at ¥29.66 ($6.37) per tonne as of 5 September.
Write to Maddison Elliott at Mining.com.au
Images: Black Canyon
