Carnavale Resources secures $7.1 million through placement and rights issue to advance the Kookynie Gold Project with a Bankable Feasibility Study underway and a strategic board reshuffle.
- Placement raises approximately $3 million at $0.0035 per share
- Underwritten non-renounceable rights issue to raise up to $4.09 million
- Board restructure with Andy Beckwith appointed Non-Executive Chairman
- Bankable Feasibility Study initiated to achieve shovel-ready status
- Proposed 15 – 1 capital consolidation subject to shareholder approval
Capital Raise to Accelerate Development
Carnavale Resources Limited (ASX – CAV) has announced a significant capital raising initiative aimed at fast-tracking the development of its Kookynie Gold Project (KGP) in the Eastern Goldfields. The company secured firm commitments for a $3 million placement, issuing approximately 857 million shares at $0.0035 each, complemented by an underwritten non-renounceable pro rata rights issue targeting an additional $4.09 million. This combined $7.1 million injection is earmarked to fund a Bankable Feasibility Study (BFS) and progress the project towards production readiness.
Strategic Board Restructure
In tandem with the capital raise, Carnavale is reshaping its leadership team to align with its mining ambitions. Andy Beckwith, formerly a director, will assume the role of Non-Executive Chairman, succeeding Ron Gajewski, who will remain on the board as a Non-Executive Director. Both Beckwith and Gajewski have committed to fully participate in the rights issue and have sub-underwritten an additional $500,000 each, signaling strong insider confidence in the project’s prospects.
Robust Economics Underpinning Project Viability
The impetus for this funding round follows the release of an updated Scoping Study for KGP, which outlines compelling economic metrics. The study projects an undiscounted free cash flow of approximately A$237 million, a pre-tax net present value (NPV) of about A$188 million, and an internal rate of return (IRR) of 165%. Initial mine production targets 93,000 ounces of gold recovered over a five-year mine life, with capital payback expected within 14 months of operation. The project is designed as a contract mining and toll treatment operation, leveraging existing processing infrastructure in the region.
Advancing Toward Shovel-Ready Status
The BFS, now underway with experienced consultants engaged, aims to refine mining and processing strategies, complete technical studies, and secure necessary approvals including mining leases and heritage agreements. Carnavale is also proposing a 15 – 1 consolidation of its issued capital, subject to shareholder approval, to simplify its capital structure and enhance appeal to institutional investors. Incentive securities, including performance rights and options, will be issued to key personnel and consultants to align interests with shareholder value creation.
Looking Ahead
The timetable for the placement, entitlement offer, and capital consolidation is set to conclude by late 2025, with the BFS completion targeted for the second half of 2026. Carnavale’s management emphasizes that the capital raise and board realignment position the company to unlock the full value of the Kookynie Gold Project, moving decisively from exploration to development and production.
Bottom Line?
Carnavale’s $7.1 million capital raise and strategic leadership changes set the stage for a pivotal year in advancing Kookynie toward production.
Questions in the middle?
- Will shareholder approval for the 15, 1 consolidation pass smoothly, and how will it impact liquidity?
- How will the BFS outcomes influence financing options and potential partnerships for mine development?
- What are the key risks in securing mining leases and heritage agreements within the projected timeline?