Corizon struggles to top up coffers to complete its move into tungsten and lithium
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Junior explorer Corizon hasn’t had much success in tapping its shareholders for extra cash to fund a move into tungsten, lithium and gold.
Corizon (ASX:CIZ) just reported a 96 per cent shortfall for a recent entitlement issue it hoped would raise $3.2 million.
Corizon is trying to raise cash to complete its shift from iron ore.
The former iron ore explorer, which was previously known as West Peak Iron, has been suspended from trading for the past couple of years after it sold its iron ore project and worked to secure a new project.
In March it announced it was acquiring RWG Minerals, which owns the Twin Hills gold project, Nardoo Well tungsten and lithium project and the Cookes Creek tungsten project — all in Western Australia.
Corizon had just $652,437 in the bank at the end of September and was trying to raise more cash to relist on the ASX.
But eligible shareholders only applied for around 6.6 million shares, which gave Corizon just $131,776.
The company received additional entitlement issue applications for a further 58,500 shares raising a further $1170.
Corizon said the remaining shortfall of around 150.9 million shares will be placed at the discretion of the board.
The company is also undertaking a public offer of up to 25 million shares to raise a further $500,000.
Both the shortfall and public offers have been extended by two weeks until November 20.