Cannindah Raises $3 Million After Scaling Back $4.9 Million SPP Applications
Cannindah Resources has received nearly $5 million in applications for its $2 million Share Purchase Plan, underscoring robust investor confidence in its Mt Cannindah Copper-Gold Project. The company plans to scale back applications and channel funds into drilling and exploration.
- SPP applications reached $4.9 million, more than double the $2 million target
- Scale back applied to reduce valid applications to $3 million
- Funds to support drilling and exploration at Mt Cannindah Copper-Gold Project
- Recent $11.1 million placement completed; second tranche pending shareholder approval
- Focus on expanding Cannindah Breccia deposit and Southern Porphyry high-grade targets
Strong Shareholder Support
Cannindah Resources Limited has closed its Share Purchase Plan (SPP) with a remarkable oversubscription, receiving $4.9 million in applications against an initial target of $2 million. This enthusiastic response from 278 shareholders reflects growing market confidence in the company’s flagship Mt Cannindah Copper-Gold Project.
The SPP, which offered shares at 4.5 cents each, was designed to raise funds for ongoing exploration and development activities. Given the oversubscription, Cannindah has implemented a pro-rata scale back, reducing valid applications to $3 million to ensure fair allocation among participants.
Funding Exploration Ambitions
The proceeds from the SPP will complement the $11.1 million raised in the first tranche of a recent placement, with a second tranche of up to $3.9 million awaiting shareholder approval in March. Together, these funds will fuel a series of drilling campaigns aimed at expanding the known copper-gold resources at Mt Cannindah.
Specifically, the company plans to undertake reverse circulation drilling to grow the Cannindah Breccia deposit, which currently holds a mineral resource estimate of 14.5 million tonnes at 1.09% copper equivalent. Additionally, diamond drilling will target the Southern Porphyry, a high-grade mineralisation zone that has shown promising results and potential for a significant resource upgrade.
Strategic Outlook and Market Implications
Managing Director Cameron Switzer highlighted the SPP’s oversubscription as a clear endorsement of the project’s transformational potential. The company’s focus on extensive drilling and metallurgical testwork aims to improve recoveries and reduce costs ahead of an updated resource estimate, positioning Cannindah for future growth.
While the scale back may temper immediate share allocations for some investors, the strong capital injection provides Cannindah with the financial flexibility to accelerate exploration and development. The pending shareholder vote on the second placement tranche will be a key milestone to watch, as it could further bolster the company’s balance sheet and project pipeline.
Overall, Cannindah’s recent capital raising activities underscore a pivotal phase in its evolution, with the Mt Cannindah Project poised to deliver significant value if exploration results continue to impress.
Bottom Line?
Cannindah’s oversubscribed SPP sets the stage for a critical drilling season that could redefine its copper-gold prospects.
Questions in the middle?
- How will the scale back impact individual shareholder allocations and sentiment?
- What results can investors expect from the upcoming drilling at the Southern Porphyry Target?
- Will the second tranche placement secure shareholder approval and what are its implications?
