Capital Mining raises $500K as it moves to kick the cannabis
Health & Biotech
Link copied to
Miner-turned-cannabis investor Capital Mining is finding it hard to kick the marijuana habit.
At the end of the last quarter, Capital (ASX:CMY) announced it would discontinue its Capital Cannabis investment which was expected to come to an end in late November.
Last week, Capital said it would take an extra month to extract itself from the pot business.
“The company has made the decision to discontinue medical cannabis investment opportunities and is now finalising an exit from this business unit.
“This exit is taking longer than anticipated and is expected to be concluded on or about 31 December 2017.”
The company rattled the tin again, raising $500,000 to boost the existing bank balance of $706,000 ahead of a renewed focus on mining.
Capital believes without the distraction of cannabis, they’ll be able to clearly focus on their core exploration of base metal and mineral projects, in particular gold, lithium and cobalt.
Last quarter the company burnt through $593,000 and expected to spend another $540,000 to December.
In the past year Capital has spent $885,000 on exploration and evaluation and, to date, reported no revenue.
The shares are suspended and last traded at 0.5c.
Capital has interests in WA, NSW and in Ireland but so far no solid evidence of a resource.
During the September quarter, they started exploratory drilling at their nickel-cobalt project in North Kalgoorlie, but the results of the samples tested still remain to be seen.