Capricorn Metals (ASX: CMM) jumped 18.42% on the 13th of August 2019 setting its 52-week high at a share price of $0.225. CMM is an exciting gold mining company that has projected reserves of 1.5Moz worth over $A3 Billion at current gold prices, the Company currently has a market cap of $199 million. Capricorn announced yesterday they plan to raise additional capital in order to develop existing projects.
Source: Capricorn Metals
Why has CMM announced a $65 Million cap raise?
The Company has secured funding in the form of a $65m share placement at a price of $0.16 from institutional investors. The additional funding will be used by Capricorn to finance the continual development of their Karlawinda Gold Project. This will expediate construction commencement to March 2020 with gold production expected to begin a year later. The investors include several of CMM’s long term partners as well as three former directors of Regis Resources Limited, a highly profitable gold company operating in Western Australia with a market cap of $3, 033m. Sustained investment and involvement in Capricorns operations demonstrates the confidence industry experts have in the firm’s profitability.
Could CMM have Western Australia’s next “Golden Mile”?
CMM operates the Karlawinda Gold Project that is over 110Km long and 30Km wide, the Company has explored two key sites within this area being Bibra and the less developed Francopan sites. Capricorn’s primary goal has been in establishing the profitability of the Bibra open pit mine site where gold reserves have been discovered in increasingly higher concentrations since 2017. In addition to the open pit mine Capricorn will develop at Bibra, geological modelling identifies that other areas within Karlawinda will also be extremely valuable.
Capricorn has been building support service needed to facilitate the Bibra mine site development this has included accommodation services indicative that the open pit mine will soon begin construction. CMM has also discovered extensive reserves at the Tamore Prospect that can be accessed through an eventual extension of the Bibra open pit mine increasing its long-term profitability.
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