Caspin Resources completes first tranche of $9.75 million capital raising

Caspin Resources Ltd (ASX:CPN) has completed the first tranche of its $9.75 million capital raising initiative that has been strongly supported, including by major and long-term shareholders. In the first tranche, Caspin has issued 9,206,514 fully paid ordinary shares at $1 per share to new and existing investors to raise more than $9.2 million. The company proposes to raise the remaining amount of around $540,000 after seeking shareholder approval at a shareholder meeting likely to be convened shortly. Use of funds The company plans to spend the funds to accelerate nickel-copper-PGE exploration at its flagship Yarawindah Brook Project and further advance its Mount Squires Project A 5,000-metre reverse circulation (RC) program is planned at Yarawindah Brook to follow up on the nickel-copper-PGE mineralisation identified in a recently completed diamond drilling program. Caspin has also identified new targets at the Mount Squires Project, which it is working towards testing in the second half of 2021. Following the placement, Caspin will have $15 million in cash, placing it in a strong position to aggressively pursue the two projects. Support from existing shareholders The placement was cornerstoned by Caspin’s existing major shareholders including Chalice Mining Ltd (ASX:CHN) and Tinci Materials (SHE:002709) who subscribed for $900,000 and $1.97 million, respectively. Chalice, which has a market cap of approximately $2.255 billion, will maintain its shareholding of about 9.2% post-placement. Shenzhen-listed Tinci, which has a market cap of approximately $22 billion, will increase its holding to around 7.5% from 5.6%. Discount to VWAP The issue price of $1.00 per new share represents a 5.7% discount to the last closing price of $1.06 on July 9, 2021, an 8.6% discount to the 5-day volume-weighted average price (VWAP) and a 19.7% discount to the 15-day VWAP up to and including July 9. Ashanti Capital Pty Ltd acted as lead manager and Foster Stockbroking acted as co-manager to the placement.