Manganese explorer Black Canyon (ASX:BCA) is set to raise $1.95 million through a placement to continue exploration and high-purity manganese sulphate (HPMSM) studies at its project in the Balfour Manganese Field in Western Australia.
The $10.34 million market capitalisation company reports the two-tranche placement was ‘strongly’ supported by existing sophisticated investors, with a cornerstone investment by Australian Resource Investment Funds.
Under the placement, about 13.9 million new shares will be issued at $0.14 each. Financial services firm Taylor Collison acted as lead manager to the placement.
The funds raised in the placement will be used to advance further exploration and resource development activities across several ‘high-priority’ targets from the Balfour Manganese Field and across Black Canyon’s portfolio of assets. The funds will also be applied to HPMSM development testwork and additional working capital.
Commenting on the placement, Black Canyon Executive Director Brendan Cummins says: “The commitment from our existing shareholders has been demonstrated and appreciated with this well-supported placement.
The company has shown a strong exploration, discovery, and mineral resource definition track record and has further advanced the application of hydrometallurgy to manganese oxide ores to produce HPMSM.
“These new funds will be used to continue exploration across the Balfour Manganese Field”
These new funds will be used to continue exploration across the Balfour Manganese Field for potential resource development activities, and to further the development of a HPMSM flowsheet design. In parallel, we will continue baseline environmental studies, permits, and approval processes and associated feasibility activity at Flanagan Bore.
We welcome the continued support of our shareholders via this recent placement. With drilling underway, we look forward to updating the market as results are received from the exploration and HPMSM work programs.”
Black Canyon is an Australian Manganese explorer that holds a ‘significant’ land position in the Balfour Manganese Field in Western Australia. Within the area, the company holds several exploration licences and a 75% interest in the Carawine Joint Venture (JV) with Carawine Resources (ASX:CWX).
On 31 March 2023, Black Canyon had $1.75 million cash at hand and no debt, according to its latest quarterly report published on 28 April 2023.
Write to Harry Mulholland at Mining.com.au
Images: Black Canyon Ltd