Celsius Resources has raised around $3.94m to fund the advancement of its Opuwo cobalt project in Namibia.
Funding was raised through a bookbuild for the issue of about 71.6 million shares at an issue price of 5.5 cents a share.
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International institutional and professional investors participated in the placement, which also attracted project vendor and shareholder in Celsius, Gecko Namibia, increasing its ownership in the company.
Celsius Resources managing director Brendan Borg said: “This capital raising allows the company to be fully funded for the rapid advancement of the exciting Opuwo cobalt project over the next 12 months.
“The strong support received for this raising from a large number of new institutional investors, as well as existing shareholders including Gecko Namibia, illustrates the high potential of the Project and the expected continued growing demand for new energy metals such as cobalt. We look forward to delivering our maiden JORC Mineral Resource in early 2018.”
Proceeds from the placement will be used to fund the activities related to the project, including completion of resource drilling and metallurgical testwork programmes, which are currently in progress, as well as the completion of scoping study.
In addition, the funds will be used to carry out exploration on newly acquired licences and begin a pre-feasibility study in the event of a positive scoping study outcome.
