Black Canyon Limited Secures $0.85m for Manganese Exploration and Feasibility Studies
BCA (BCA) Share Update July 2024 Sunday 28th
Black Canyon Limited Announces Successful $0.85m Capital Raising for Manganese Exploration
Black Canyon Limited (ASX: BCA) has announced the successful completion of a $0.85 million capital raising through a two-tranche placement. The funds will be used for further exploration and feasibility studies across the company's manganese portfolio.
Instant Summary:
- Successful completion of a $0.85m placement.
- Directors committed to subscribing $100,000, pending shareholder approval.
- Funds allocated for manganese exploration and feasibility studies.
- Continued advancement of High Purity Manganese Sulphate (HPMSM) strategy.
- Share Purchase Plan (SPP) to raise an additional $0.5m.
Capital Raising Details
Black Canyon Limited (ASX: BCA) has successfully raised $0.85 million through a two-tranche placement of approximately 12.1 million fully paid ordinary shares at $0.07 per share. Each share comes with one free attaching option for every two shares issued, with a strike price of $0.14 per option and a two-year term.
The placement received strong support from institutional and sophisticated investors, including Australian Resource Investment Funds. The new shares will rank equally with existing shares in the company.
Use of Funds
The funds raised will be used to advance development studies and exploration activities across Black Canyon's manganese assets. This includes metallurgical studies to optimize the manganese concentrate flowsheet, feasibility activities, and drilling at the Wandanya high-grade manganese target.
The company will also continue to advance its High Purity Manganese Sulphate (HPMSM) strategy with further hydrometallurgical test work and location assessments. Additionally, baseline environmental studies and a permit and approval strategy for the KR1 and KR2 projects will be progressed.
Share Purchase Plan (SPP)
In addition to the placement, Black Canyon will offer a Share Purchase Plan (SPP) to eligible investors on the same terms as the placement, aiming to raise an additional $0.5 million. The SPP will provide eligible shareholders the opportunity to increase their holdings by up to A$30,000 without incurring any brokerage or transaction costs.
Further information regarding the SPP, including terms and conditions, will be provided to eligible shareholders in the SPP offer prospectus.
The successful capital raising is a positive development for Black Canyon Limited, providing the necessary funds to advance its manganese exploration and feasibility studies. This could potentially enhance the company's asset base and future revenue streams, positively impacting its stock price. The continued support from institutional and sophisticated investors indicates confidence in the company's strategic direction and project potential.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, noting the strategic use of funds for advancing key projects. The commitment from the directors to participate in the placement further reinforces confidence in the company's future prospects.
Conclusion:
Black Canyon Limited's successful capital raising marks a significant step forward in its exploration and feasibility efforts. Investors should keep an eye on the progress of the manganese projects and the potential impact on the company's stock performance. The upcoming Share Purchase Plan offers an additional opportunity for shareholders to participate in the company's growth.