Classic Minerals Finalizes LDA Capital Subscription, Secures Funding for Kat Gap Gold Project
CLZ (CLZ) Share Update July 2024 Friday 5th
Classic Minerals Completes LDA Capital Subscription
Classic Minerals Limited (ASX: CLZ) has successfully completed the subscription process with LDA Capital Limited, securing AUD $47,500 to advance its Kat Gap Gold Project.
Instant Summary:
- Completion of LDA Capital pricing period.
- LDA Capital subscribes for 49,850,800 shares.
- Classic Minerals receives AUD $47,500.
- Subscription shares priced at $0.00095 each.
- Remaining 1,149,200 collateral shares held for future call notices.
Completion of Subscription
Classic Minerals Limited (CLZ or Company) has announced the successful completion of its subscription process with LDA Capital Limited (LDA). The pricing period for this subscription has expired by mutual consent, and LDA has subscribed for 49,850,800 shares, bringing in AUD $47,500 for Classic Minerals. The shares were priced at $0.00095 each, reflecting a mutually agreed price during this period.
The remaining 1,149,200 collateral shares, which were not subscribed by LDA, will remain in LDA's account. These shares can be applied to any future call notices issued to LDA Capital Limited.
Strategic Funding Agreement
This subscription is part of a broader strategic $15 million Put Option Agreement that Classic Minerals has with the US-based financier LDA Capital, initially announced in December 2022. Under the terms of this agreement, LDA can subscribe for a minimum of 50% and a maximum of 200% of the shares put to them by Classic Minerals.
Chairman John Lester highlighted the importance of this facility, stating that it provides the company with a reliable source of capital, independent of short-term market volatility. The funds secured through this agreement will be used to advance work at the Kat Gap Gold Project, which is a key focus for Classic Minerals.
About Classic Minerals
Classic Minerals Limited is a West Australian-based minerals exploration and mining company. The company holds approximately 578 km2 of tenements across two major regional exploration areas in Western Australia, focusing on high-grade gold and base metal targets. The Kat Gap Gold Project, located 170 km south of Southern Cross and 50 km south of the Forrestania Gold Project, is the flagship project for Classic Minerals, with strong grades and near-surface mineralization expected to reach full-scale production soon.
In addition to the Kat Gap Gold Project, Classic Minerals also holds an 80% interest in the gold rights for the Forrestania Gold Project (excluding Kat Gap), with the remaining 20% held by Hannans Ltd. The company has inferred and indicated mineral resources of 8.24 Mt at 1.52 g/t for 403,906 ounces of gold, classified and reported in accordance with the JORC Code (2012).
The completion of the LDA Capital subscription is a positive development for Classic Minerals, providing the necessary capital to advance the Kat Gap Gold Project. This funding will enable the company to progress its exploration, mining, and processing efforts, potentially leading to increased production and revenue. The strategic agreement with LDA Capital also ensures that Classic Minerals has access to reliable funding, mitigating the risks associated with market volatility.
Investor Reaction:
Investors and analysts have reacted positively to the news, viewing the successful completion of the subscription as a sign of confidence in Classic Minerals' projects and management. The capital injection is expected to support the company's growth and development, particularly at the Kat Gap Gold Project.
Conclusion:
Investors should keep an eye on Classic Minerals as it progresses with its projects, particularly the Kat Gap Gold Project. The company's strategic funding agreement with LDA Capital provides a solid foundation for future growth and development. Subscribe to our newsletter for regular updates and in-depth analysis of Classic Minerals and other stock market news.