Codrus Minerals (ASX:CDR) has received binding commitments for a single-tranche share placement to raise $920,000 for the exploration of the Karloning Rare Earth Element (REE) Project in Western Australia.
The rare earths focused company says 11.46 million fully paid ordinary shares will be issued at a price of $0.80 per share, representing a 13% discount to Codrus’ last traded price.
Directors have committed to apply for $35,000 worth of additional shares on the same terms as the shares acquired in the placement, subject to shareholder approval.
Funds raised will allow Codrus to continue exploration activities, including conducting an airborne electromagnetic (EM) survey over the wider project tenure to support targeting areas with ‘thicker’ zones of clay development above the granite source rocks.
Codrus adds that funding will also support following up with targeted aircore drilling, advancing the project to an exploration target status, soil and rock chip sampling program at the Middle Creek Gold Project, alongside general working capital requirements.
Commenting on the placement, Codrus Minerals Managing Director Shannan Bamforth says: “This capital raising will allow us to expand our ongoing exploration efforts at the exciting Karloning Rare Earths Projects in Western Australia.
Combined with our existing cash position of $1.8 million, the raising puts us in a strong position to unlock the value of the Karloning Project by expanding our exploration efforts and evaluating the broader potential of the discovery.”
Codrus Minerals is an ASX-listed exploration company, focused on new growth and diversification opportunities in the rare earths sector. The company’s portfolio of assets are located in the US and Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Codrus Minerals
