Corazon gears up for exploration, backed by cornerstone injection of Blackstone millions
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Corazon Mining has secured a commitment for a placement from Blackstone Minerals (ASX:BSX) to raise around $2m at $0.04/share.
Blackstone is a nickel-focused development company and aspiring producer, via its Ta Khoa Nickel Project in Vietnam, and once completed, the placement will give BSX a 14.32% holding in the company.
The cornerstone investment will be used to accelerate nickel exploration and development at the company’s nickel sulphide projects in Canada and Australia.
Plus, the companies have signed an MOU and will form a Steering Committee to assess opportunities to enter into supply, offtake and financing arrangements relating to upstream and downstream nickel and cobalt products produced at Lynn Lake.
BSX MD Scott Williamson said the company’s recent Ta Khoa Nickel Project Pre-feasibility study demonstrated the economic value and importance of securing upstream supply for its vertically integrated business.
“The Lynn Lake project boasts a meaningful nickel-copper-cobalt resource that the company believes has potential for a significant valuation uplift based on integration with the Ta Khoa refinery,” he said.
“We are also very excited by the exploration potential at the Fraser Lake Complex and look forward to collaborating with the Corazon management team to progress mine planning and development activities.”
Corazon Mining’s (ASX:CZN) chairman Terry Streeter said the share registry has evolved in recent months, with nickel-focused groups like Delph and Blackstone seeking to cornerstone the company.
“This provides the foundations of support required to accelerate exploration and project studies on the potential re-development of the Lynn Lake nickel sulphide project,” he said.
“We are also pleased to offer Corazon shareholders the opportunity to support the advancement of our nickel assets via the entitlement offer, at a time of strong nickel prices and increased demand for product from the emerging rechargeable battery sector.”
The non-renounceable entitlement offer, is on a one-for-one basis at $0.03 per share, to raise up to $10.7m.
The company’s focus is on the exploration and re-development of Lynn Lake, where drilling is expected to restart this month – in parallel with ongoing mining and processing studies.
The funds raised will be used for these activities, along with resource definition drilling at the project.
Corazon will also use the cap raise to finalise the acquisition of the Miriam project in WA along with initial exploration including geophysical surveys and drilling, and for exploration at its Mt Gilmore copper-cobalt-gold project in NSW.
This article was developed in collaboration with Corazon Mining 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.