Caravel Minerals (ASX:CVV) has tapped investors for $5 million that will be used to fund ongoing studies and permitting activities at its namesake project in Western Australia.
Both existing and new institutional investors have committed to purchasing 34.5 million shares at $0.145 each, which represents a 21.6% discount to Caravel’s closing share price of $0.185 on 15 October.
The company’s management is expected to purchase $190,000 worth of shares, subject to shareholder approval at an upcoming meeting.
All shares on offer will be issued in a single tranche, with settlement due to occur on 24 October.
As the Caravel Copper Project progresses to a final Feasibility Study, the company has been focused on a variety of studies and permitting processes. This includes technical studies, such as mine planning and technical design, as well as power and water access applications, environmental approvals, and stakeholder engagement.
“The strong response from investors both domestically and overseas reflects the scale and quality of the Caravel Copper Project as one of the few long-life copper development assets on the horizon globally, with the added attraction of being located in a tier-one jurisdiction close to world-class infrastructure and services,” Managing Director Don Hyma says.
“Copper is a metal which is front and centre of the global decarbonisation push — giving the Caravel Project extraordinary leverage to this thematic at a time when a structural supply deficit is forecast to emerge toward the end of the current decade.”
Located 150km north-east of Perth, the Caravel Project hosts a mineral resource measuring 3.03 million tonnes of copper, 60,000 tonnes of molybdenum, more than 895,000 ounces of gold, and 46.3 million ounces of silver.
Shares in Caravel had slid 13.51% this morning to $0.16 as of 11:39am AEDT.
Write to Oliver Gray at Mining.com.au
Images: Caravel Minerals
