Carawine Resources raises $4.9m to advance exploration at Tropicana North and Fraser Range

The placement was strongly supported by Carawine’s existing professional and sophisticated investors.

Carawine Resources Ltd has raised $4.9m at 18c per share to advance exploration at recent discoveries at its Tropicana North and Fraser Range Projects in Western Australia.

A cornerstone investment from the company’s largest shareholder, Christopher Wallin, was received and is set to increase his shareholding to around 19pc of the issued capital once the placement has been completed.

Exploration programs

At Tropicana North, Carawine (ASX:CWX) says proceeds will be used to carry out a follow-up diamond and reverse circulation (RC) program at the Big Freeze and Beanie gold discoveries as well as expanding diamond drilling at the high-grade Hercules prospect.

Ground geophysical programs and follow-up drilling will be undertaken at the Big Bang nickel-copper sulphide targets in the Fraser Range.

CWX managing director David Boyd said the company appreciates the strong support from existing shareholders and looks forward to a highly active period ahead.

“Recent high-grade gold results from Tropicana North have given us the confidence and drill targets to expand our exploration drilling programs.

“The funds from this placement will enable us to continue these programs throughout the coming months and into 2022.”

Placement

The placement will be completed in two tranches, as follows:

27,222,221 shares will be issued without shareholder approval using Carawine’s existing placement capacity under ASX Listing Rules 7.1 (16,333,485 Shares) and 7.1A (10,888,736 Shares) on or November 15; and
222,224 shares will be issued to directors of the company, subject to shareholders’ approval at the AGM – these shares are expected to be issued on or about December 20.

This article was developed in collaboration with Carawine Resources Limited, 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.