Capricorn Metals (ASX:CMM) (Capricorn or the Company) is pleased to announce it has received firm commitments for an institutional placement of new fully paid shares to raise $200 million (before costs) at an issue price of $6.00 per share.
The placement was strongly supported by existing institutional shareholders and new high quality Australian and international institutional investors. 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 KEP and MGGP. This underpins Capricorn's clear development pathway to become a 300,000 ounce per annum gold producer.
Placement Details
The Company has received firm commitments from sophisticated and professional investors under the Placement to raise approximately $200 million (before costs) through the issue of 33,333,334 shares at an issue price of $6.00 per share. The issue price of $6.00 per share represents a 4.9% discount to Capricorn's last traded price of $6.31 on Tuesday, 29 October 2024, and a 5.8% discount to Capricorn's 5-day VWAP of $6.37. Capricorn shares are expected to resume trading on the ASX from market open today, Friday 1 November 2024. Settlement of the new shares is expected to occur on 7 November 2024, with allotment on 8 November 2024. Upon completion of the placement the 33,333,334 new shares will represent approximately 8.8% of the expanded share capital of the Company. The placement shares will be issued using the Company's existing capacity under ASX LR 7.1
Contact:
Mr Mark Clark
Executive Chairman
Tel: +61 8 9212 4600
Email: enquiries@capmet.com.au
Not an offer in the United States
This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act and applicable US state securities laws.
Forward Looking Statements
This announcement may contain certain 'forward-looking statements' which may not have been based solely on historical facts, but rather may be based on the Company's current expectations about future events and results. Where the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined throughout this announcement and all material assumptions are disclosed. However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's Annual Reports, as well as the Company's other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any 'forward looking statement' to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws
Competent Person's Statement
The detailed information relating to the Ore Reserves and Mineral Resources for the Karlawinda Gold Project was contained in the Company's ASX announcement dated 1 August 2024 entitled 'KGP Ore Reserve Increases to 1.43Moz's'. The information relating to the Ore Reserves and Mineral Resources for the Mt Gibson Gold Project Gold Project was contained in the Company's ASX announcement dated 19 April 2024 entitled 'MGGP Ore Reserve Grows to 1.83 Million Ounces'. The reports are available to view on the ASX website and on the Company's website at www.capmetals.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcements and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not materially changed from previous market announcements.
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