Centaurus Metals

$75m Institutional Placement To Drive Continued Growth And Development Of The Jaguar Nickel Sulphide Project

Proceeds to underpin a Definitive Feasibility Study (DFS) due by the end of 2022 including more than 90,000m of drilling to further expand and upgrade the resource inventory

Centaurus Metals (ASX Code: CTM) is pleased to announce it has received firm commitments from over 20 high- quality Australian and international institutional investors to raise $75 million as part of an institutional placement (Placement) to underpin the next phase of growth and development of its 100%-owned Jaguar Nickel Sulphide Project in northern Brazil (JaguarProject).


Highlights

  • Firm commitments received to raise $75 million at $1.16 per share from over 20 high-quality Australian and international institutional investors.
  • In addition to the extensive new institutional investor support, the raise has been well supported by existing substantial shareholders including affiliates of the Sprott Group, McCusker Holdings, Dundee Goodman Merchant Partners and Harmanis Holdings.
  • Proceeds to be used to fund the completion of the Definitive Feasibility Study at the 100%- owned Jaguar Nickel Sulphide Project in northern Brazil, due by the end of 2022, as well as for pre-development and financing activities ahead of a Final investment decision.
  • Centaurus recently announced an updated JORC Resource of 80.6Mt at 0.91% Ni for 730,700 tonnes of contained nickel metal1 for Jaguar as the foundation for a new, globally significant nickel sulphate operation with class-leading ESG credentials.
  • Funds will also be used to advance the Company’s aggressive drilling approach, with over 90,000m of drilling planned this year to maximise Measured and Indicated Resources for the DFS and pursue exploration targeting new discoveries.

Specifically, the funds will be used to complete a Definitive Feasibility Study (DFS) for Jaguar and maintain the Company’s very strong existing drilling momentum. A 90,000m drill program planned for 2022 will include significant ongoing diamond drilling designed to maximise the Measured and Indicated components of the extensive Resource inventory ready for Reserve conversion. Funds will also be used for pre-development and financing activities ahead of a planned Final Investment Decision (FID) on the Project in Q3 2023.

There was very strong demand for the Placement from over 20 Australian and international institutional investors as well as existing substantial shareholders, including affiliates of the Sprott Group, McCusker Holdings, Dundee Goodman Merchant Partners and Harmanis Holdings. Institutional bidding under the placement significantly exceeded the $75 million Placement amount and bids were scaled to accommodate the strong demand.

The proceeds of the Placement will increase the Company’s cash balance to approximately A$83 million, significantly strengthening its balance sheet as it completes DFS activities and advances the Project through to FID.

Click here for the full ASX Release

This article includes content from Centaurus Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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