USD $4,143.86
Goldman New funding supports increased production and Mt Gibson exploration
Capricorn Metals (ASX:CMM) has raised $200 million through an institutional placement to drive the expansion of its Karlawinda gold project in Western Australia.
The funds will support Capricorn’s plans to boost Karlawinda’s annual gold production to 150,000 ounces. This target is based on the project’s 10-year mine life and 1.43 million ounces (Moz) in ore reserves, graded at 0.8 grams per tonne (g/t).
Capricorn issued over 33 million new shares at $6 per share, representing a 4.9% discount to its last closing price and a 5.8% discount to its five-day volume-weighted average price of $6.37.
Beyond Karlawinda, the raised capital will also fund detailed plant design, engineering, and equipment purchases for the Karlawinda and Mt Gibson gold projects, as well as accelerated exploration activities at Mt Gibson. This exploration aims to enhance Mt Gibson’s resource and reserve base, while strengthening Capricorn’s balance sheet to support debt repayment flexibility and additional gold hedging options.
Capricorn stated:
The placement proceeds, together with current cash reserves and the expected future free cash flow generated from Karlawinda, are expected to fully fund the development of the Karlawinda expansion project and the Mt Gibson gold project.
Capricorn expects both projects to be fully funded without requiring additional debt or mandatory gold hedging.
