Caravel raising $12m to advance copper project

Investors have demonstrated their support for Caravel and its push to develop its namesake copper project by providing firm commitments for a $12m placement.

New and existing institutional and sophisticated investors will be offered 60 million shares priced at 20c each, an 11.6% discount to the 10-day volume weighted average price of 22.1c.

This includes a $100,000 commitment from executive director Alasdair Cooke, which is subject to shareholder approval.

Caravel Minerals (ASX:CVV) will use the proceeds to support execution of the definitive feasibility study for the Caravel copper project.

“We are very pleased with the strong support shown by new and existing institutional and sophisticated investors to participate in this important phase of the Caravel Copper Project,” Cooke noted.

“The proceeds of the capital raise will assist us advance the Caravel Copper Project DFS and take the project toward a development decision.”

Use of funds

Caravel intends to use the funds to secure land tenure, carry out further resource infill, sterilisation and geotechnical drilling as well as tailings site evaluation, and further development of mining and site layouts.

It also intends to perform further metallurgy and processing test work and optimisation, develop borefield and pipeline evaluation, further power supply studies and access applications, and secure environmental permitting and approvals.

Other work includes further near-mine exploration.

New helmsman

The company has also appointed Don Hyma as its new managing director.

He has more than 30 years’ experience in Australia, Canada, Chile and New Caledonia in the development of numerous major projects, primarily in base metals (copper and nickel) and iron ore.

Previous roles include director projects for Fortescue Metals Group, technical director at Mitsui & Co, vice president projects for the Iron Ore Company of Canada and general manager projects for Rio Tinto Iron Ore.

This article was developed in collaboration with Caravel Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.