Capricorn Metals has launched an $18.26 million equity raising to further develop its Karlawinda gold project in the Pilbara, Western Australia.
The project is also set to be boosted by the appointment of a new chairman and director of the company upon completion of its first phase.
Capricorn’s raising will consist of a placement to raise $15 million, to be completed in two tranches. Tranche one will raise up to $6 million through the issue of shares and is scheduled to be completed by Friday.
Tranche two requires shareholder approval and a further $3.26 million to be offered to asset management company, Hawke’s Point.
Subsequent to the completion of tranche one, Mark Clark will be appointed executive chairman and Mark Okeby as non-executive director, with current non-executive chairman Doug Jendry to become a non-executive director.
The appointments will provide stability to the company following the resignation of its chief executive officer and chief financial officer earlier this year after a shareholder vote.
Chief executive officer at the time, Warren Hallam, had only been at the company for one month, however pressure was mounting due to delays at the Karlawinda project. Hallam has been replaced by David Fraser, who started as CEO on July 1.
The project secured a $107 million funding package from Macquarie Bank in December last year that was expected to provide a significant boost.
Jendry said the new appointments and funding would help drive the Karlawinda project.
“To this end we are very pleased to have attracted two highly credentialed mining executives in Messrs Clark and Okeby to join the board and drive the development of the project,” he said.
“The funding secured through the placement also further bolsters Capricorn’s cash position and will allow the company to expedite the work required to progress towards development.”