Classic secures A$20m in funding
PERTH (miningweekly.com) – Junior Classic Minerals has secured A$20.1-million in funding to advance its Kat Gap gold project, in Western Australia, and to fund exploration work in the region.
The ASX-listed company on Thursday announced that it had secured A$15-million in equity capital with US institutional investment group LDA through a put option agreement and has entered into A$5.1-million convertible note issue.
The LDA funding package would have a three-year period and included a 2% facility fee totalling A$300 000 which is payable within 12 months of the execution of the put option agreement. In addition, Classic has agreed to issue LDA some 59.6-million options, exercisable at over 1.3c each with an expiry date of three years from the date of issue.
Classic told shareholders that the structure of the funding package was low cost and substantially reduced the project financing risk for phase 1 of the Kat Gap project.
Additionally, the company has entered into a mandate with Still Capital for a capital raising of up to A$5.5-million by way of a proposed issue of convertible notes, each with a face value of A$5 000. The convertible notes will be convertible at any time up to 18 months after their issue.
Noteholders of the converting notes will also be entitled to one free attaching option for every two shares issued on conversion, exercisable at 2.5c each on or before December 1, 2025.
Classic said on Thursday that the funding would allow the company to complete the phase 1 production ramp-up at Kat Gap and to accelerate its drilling exploration programmes across its greater Forrestnia area to increase its gold resource base.
Classic intends to take a staged approach to mining at Kat Gap, aiming to reduce early overhead and to mitigate risk. Final staged pit design work has started, and Classic is hoping to reduce overheads where possible to maximise profits and minimise risk.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Showroom
ZF Aftermarket is the after-sales division of the world-renowned German ZF group, a global leader in mobility technology.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
