Black Canyon (ASX:BCA) is conducting a two-tranche placement to raise $850,000 to continue exploring and developing its manganese portfolio, including the KR1 and KR2 projects.
The funds will be used to advance further development studies and exploration activities, as well as continue high-purity manganese sulphate monohydrate development.
Managing Director Brendan Cummins says the company has advanced its KR1 and KR2 projects from initial discovery through to a Scoping Study level in 12 months.
“These new funds will be used to progress Feasibility-related studies and continue exploration across the company’s manganese portfolio,” Cummins says.
“The company will also progress baseline environmental studies and establish a permit and approval strategy for the KR1 and KR2 projects. The company will continue to engage with end users of manganese concentrates following the completion of the KR1 and KR2 Scoping Study.
“A maiden drill program is planned at our high-grade manganese target at Wandanya, and we look forward to updating the market as results are received from the exploration and metallurgical work programs.”
Under the placement, the company will issue 12.1 million shares at $0.07 per share, together with one free attaching option for every two shares issued. The options will have a strike price of $0.14 per option and a two-year expiry date.
The issue price represents a 15.4% discount to the 5-day volume weighted average price (VWAP) and a 19.6% discount to the 30-day VWAP.
Foster Stockbroking and Taylor Collison will act as joint lead managers.
Black Canyon is also conducting a share purchase plan (SPP) to provide eligible shareholders the opportunity to increase their holding up to $30,000.
The SPP, which is on the same terms as the placement, aims to raise $500,000.
Black Canyon is a manganese-focused explorer that holds a landholding of 2,100km2 in the underexplored Balfour Manganese Field and across the Oakover Basin in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Canyon
