Orezone Bombore

ASX-listed cobalt junior Celsius Resources has completed a bookbuild for the issue of approximately 48.6 million shares to raise $9 million which it will use to advance its Opuwo cobalt project in Namibia.

The placement was well supported by institutional and professional investors from North America, Hong Kong, Europe and Australia.

At this stage, advancement of the cobalt project includes:

  • Completion of the project scoping study (already well advanced, due June 2018);
  • Completion of a pre-feasibility study;
  • Resource infill and extension drilling programme;
  • Exploration of additional targets identified across the broader project area, including newly acquired licences; and
  • Commencement of a bankable feasibility study (assuming positive scoping study/pre-feasibility study outcomes).

Commenting on the placement, MD Brendan Borg comments: “This capital raising allows the company to be fully funded for the continued rapid evaluation of the Opuwo cobalt project beyond the pre-feasibility stage.”

“With our recently announced maiden JORC compliant mineral resource confirming the project as having what we consider to be world significance in terms of size and strategic value, we look forward to continuing to progress the studies on the project as quickly as possible.”

Celsius Resources does not require shareholder approval for the placement as funds will be raised pursuant to capacity available under Listing Rule 7.1A. Settlement of the placement is expected to occur on Thursday, 10 May 2018.

Share purchase plan

In addition to the placement, Celsius will offer existing shareholders the opportunity to participate in a share purchase plan (SPP) at the same price as the placement, to raise a maximum of $3 million via the issue of approximately 16.2 million shares.

If total demand for the SPP exceeds $3 million, the company reserves the right to close the offer early and/or to scale back applications as determined by it in its absolute and sole discretion.

The directors of the company intend to participate in the SPP at various levels, however should the SPP be fully subscribed, the directors will cede their rights to enable shareholder participation.

Participation in the SPP will be open to shareholders who are registered holders of Celsius shares at 5.00pm (WST) on the Record Date of 2 May 2018, and whose registered address is in Australia or New Zealand.

The SPP will entitle eligible shareholders, irrespective of the size of their shareholding, to purchase up to $15 000 SPP shares at an issue price of 18.5 cents per SPP share.