Corazon raising $2.6m to capitalise on nickel boom
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Investors are backing Corazon and its nickel projects in Canada and WA by committing to a $2.6m placement to fund exploration.
Under the two-tranche placement, sophisticated, professional, and institutional investors will subscribe for 82 million shares priced at 3.2c each to raise the funds.
The first tranche of about 50.76 million shares will be issued on or about 22 September while the remaining shares will be issued subject to shareholders approving the release of new shares at a general meeting expected on or around October.
Proceeds from the placement will be used by Corazon Mining (ASX:CZN) to drill large off-hole electromagnetic conductors generated from drilling this earlier year at the ‘Lynn Lake’ nickel sulphide project in Canada.
Funds will also be used to complete due diligence for the ‘Miriam’ nickel sulphide project in WA.
This is fuelled in no small part to the bullish sentiment for nickel to feed the growing lithium-ion battery boom.
Chairman Terry Streeter noted that the next phase of drilling at priority exploration targets at Lynn Lake, which he described as a “significant strategically located development and exploration opportunity”, is scheduled to begin this month.
“We are delighted with the high level of support for this placement, which provides strong validation for the quality and potential of our nickel assets,” he added.
Corazon is the first company to consolidate the entire historical Lynn Lake nickel-copper-cobalt mining centre in Canada and subsequently defined a JORC resource of 116,800t of nickel, 54,300t copper and 5,300t of cobalt.
The company believes that there’s more to be found and that modern mining practices offers the potential to deliver a robust, long-lived, economically viable mining operation.
Meanwhile, the Miriam project just 10km south-southwest of Coolgardie was first discovered in 1969 with historical drilling identifying a ‘high nickel tenor’ within massive and disseminated sulphide.
It consists of five prospecting licence applications covering an area of about 6km by 1.5km with historical drilling focused on testing the ultramafic sequence north and south of the Miriam Deposit.
However, this shallow percussion drilling did not substantially penetrate the overlying oxidised zone nor reached the ultramafic footwall target, offering the company an extensive opportunity to target nickel sulphide mineralisation at depth and along strike from previous drilling.
This article was developed in collaboration with Corazon Mining, 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.