Black Canyon (ASX:BCA) is conducting a placement to raise $2.5 million for exploration programs across the Wandanya Project in Western Australia.
Under the two tranche placement, 41.7 million shares will be issued at $0.06 per new share. The issue price represents a 9.1% discount to the five-day volume weighted average price.
Foster Stockbroking and Taylor Collison will act as joint lead managers to the placement.
Black Canyon will use the funds for further reverse circulation drilling across the manganese and iron ore targets at Wandanya, as well as diamond core drilling, metallurgical testwork, and Feasibility Study related costs.
Managing Director Brendan Cummins says this placement allows the company to continue its exploration, including drill testing Wandanya, along with delivering manganese concentrates to smelter end users and potentially suitability for high-purity manganese sulphate monohydrate downstream processing.
“With the completion of the placement we look forward to 2025, being well-funded to achieve our objectives with a ground position in the East Pilbara to deliver further significant results,” Cummins says.
Black Canyon has a 2,100km2 land package in the underexplored Balfour Manganese Field and across the Oakover Basin in Western Australia. The company’s assets are considered prospective for manganese and iron.
Manganese is considered essential and non-substitutable in the manufacturing of alloys for the steel industry and a critical mineral in the cathodes of lithium-ion batteries.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Canyon
