Coziron directors rush to the rescue to keep the explorer afloat
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Three Coziron Resources (ASX:CZR) directors have tipped in $125,000 more cash to keep the company afloat until it can raise extra money from the market.
The new money comes six months after mining identity Mark Creasy agreed to lend them $1m, of which just $63,000 was left at the end of December.
Chairman Adam Sierakowski and directors Stephen Lowe and newcomer Simon Jackson put in $50,000, $50,000 and $25,000 respectively as a six-month loan.
They’re getting a 10 per cent interest rate and they can choose to take the repayment in October in cash or stock.
If the directors choose to take the money they’ve loaned as stock, they’ll be paid out at 2c a share or at whatever price the company undertakes a capital raising, whichever is lower.
The gold and vanadium explorer closed Thursday at 0.7c.
It told the ASX in February, in response to a query, that it planned to raise equity cash now it had a new director and testwork results from the Buddadoo iron ore and vanadium project.
Coziron is running cheap after slashing its exploration spending over the last few quarters: it spent $289,000 on exploration in the December quarter and $108,000 on running the business. It hoped to spend less on exploration and slightly more on admin this quarter.
It used the Creasy cash to continue exploration at Buddadoo, near Geraldton, and the Croydon Top Camp gold project near Karratha. The company was acquiring a 70 per cent stake in the Croydon Top Camp project from the Creasy Group.
In February, Coziron said it may have turned up some low-grade vanadium and iron ore at Buddaboo in the Pilbara, saying that at -45 microns, magnetite concentrates returned iron from 66-68 per cent, and vanadium oxide from 0.8 to 1.86 per cent.
But investors are not yet buying the story, as the share price over the last 12 months indicates.