Capricorn Metals, an Australian Securities Exchange (ASX)-listed mining company, has successfully raised A$200m ($131.38m) through an institutional placement, pricing shares at A$6 each, a 4.9% discount to the previous close of A$6.31.

The company noted that the capital injection has been earmarked for the KEP and MGGP, with a focus on increasing gold production and strengthening the company’s financial position.

It added that the bookbuild attracted considerable interest from top-tier institutional investors globally, with significant backing from current institutional shareholders.

The raised funds will boost the processing capacity of the KEP by 2.5 million tonnes per annum (mtpa), taking it to 6.5mtpa, and elevate gold output to 150,000oz.

Additionally, the capital will facilitate detailed plant design, engineering and procurement of long-lead equipment for both the KEP and MGGP.

Capricorn also plans to accelerate exploration at the MGGP, focusing on expanding the resource and reserve base and expediting drilling in high-potential areas for underground resource development.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The financial strategy includes allocating funds for working capital and enhancing the company’s balance sheet, providing flexibility for debt repayment and the possibility of further gold hedging transactions.

With these developments, Capricorn Metals aims to fully fund the KEP and MGGP without the need for additional debt or mandatory gold hedging.

The expansion of the KEP and MGGP is projected to propel Capricorn Metals to an annual gold production rate exceeding 300,000oz.

This growth leverages the company’s 3.3 million-ounce reserve base across two robust projects, each with a ten-year lifespan, situated in the premier mining jurisdiction of Western Australia.

The company expects operating costs to be in the lowest quartile of the Australian gold mining sector.

Argonaut Securities led the transaction as the sole global coordinator, joint lead manager and joint bookrunner.

Bell Potter Securities also served as a joint lead manager and joint bookrunner, while Barrenjoey Markets and Jarden Australia participated as co-managers for the placement.