Cygnus raises cash for Quebec exploration
PERTH (miningweekly.com) – Junior Cygnus Gold is looking to raise A$6.3-million in a share placement to fund exploration work at its Pontax lithium project, in Quebec.
The ASX-listed company on Thursday said that it had received commitments from sophisticated and professional investors for the placement of 8.67-million shares, under the flow through shares provision under Canadian tax law.
The shares will be placed at 73c each, and the flow through shares will be immediately on-sold through a block trade agreement to domestic and offshore investors at a price of 35c each.
The placement will be subject to shareholder approval at a forthcoming general meeting, scheduled for November 18.
“Cygnus is now in an extremely enviable position with an advanced lithium exploration project, a dominant land position in the heart of the world-class James Bay lithium district, A$10-million in committed cash and drilling about to commence,” said executive director Michael Naylor.
“The company is using the Canadian flow through regime to raise a significant amount of funds at a premium with minimal dilution to our shareholders,” he added.
Funds raised from the placement will finance exploration work, including a 10 000 m diamond drilling campaign expected to start in early November, field work, and lidar and geophysics at the recently acquired Pontax extension properties.
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