Lion Selection Group roars into Caspin’s corner in $4.5m raise

• Caspin raises $4.5m in strongly supported placement
• The raising was oversubscribed and supported by new and existing investors, including a cornerstone investment from Lion Selection Group
• Caspin well funded for drilling and work programs at Weethalle gold project and Bygoo tin project

Special report: Caspin Resources has struck a chord with investors, pulling in strong backing for its next round of drilling at the Weethalle gold and Bygoo tin projects in NSW.

The company has secured $4.5 million through an equity placement to be topped up by a further $100,000 from directors, pending shareholder approval, with the raising heavily oversubscribed and anchored by a cornerstone investment from Lion Selection Group (ASX: LSX).

Caspin’s (ASX:CPN) raise will be delivered in two tranches, with around 61.3m new shares to be issued at 7.5c each.

The first tranche, worth just under $2.5m, will see more than 33m shares issued under the company’s existing placement capacity.

The second tranche, covering about 28m shares for around $2.1m, is subject to shareholder approval at the upcoming AGM, expected in mid-November.

At 7.5c per share, the placement gives investors a 10.7% discount to the most recent close and a 7.4% discount to the 10-day VWAP, while still sitting 1.4% above the 20-day VWAP.

Caspin positions for multiple discoveries

CPN managing director Greg Miles said the company was delighted with the support for the capital raise and excited to welcome new investors, including Lion Selection Group.

“Lion have a long history of successful investments in the junior exploration and development sector and we hope this partnership will continue that tradition,” he said.

“We are also grateful for the continued support of our existing shareholders.

“We are now well capitalised and can look forward to imminent drill programs at the Weethalle gold project, before moving onto the Bygoo tin project,” he added.

“The company is in an enviable position to make a new gold discovery with the foundation of an emerging tin project, providing multiple avenues to success.”

Lion takes 4.1% stake in Caspin

Lion has chipped in $750,000 as part of Caspin’s $4.5m raise, leaving Lion set to emerge with around a 4.1% stake once the placement wraps up.

LSX managing director Hedley Widdup said Caspin was a very welcome addition to the company’s portfolio, adding an element of base metals diversity with considerable growth potential.

“We already know the Bygoo field is well mineralised and the drilling that Caspin has done shows an attractive grade,” he said.

“We think shallow and potentially open-pittable tin mineralisation could have high amenability to ore sorting technology, offering the possibility of materially uplifting the effective grade of the project if this is proven through more comprehensive test work.”

This article was developed in collaboration with Caspin Resources, 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.