A day after announcing its board had approved expansion for its flagship Karlawinda gold project, West Perth-based Capricorn Metals has launched a $200 million capital raise.
A day after announcing its board had approved expansion for its flagship Karlawinda gold project, West Perth-based Capricorn Metals has launched a $200 million capital raise.
Eying off an annual production guidance of 150,000 ounces at Karlawinda, located 65km south-west of Newman, the expansion will be driven by the installation of a brand new three-stage crushing ball and mill circuit.
In Tuesday’s market update, Capricorn said this would increase its processing capacity to around 6.5 million tonnes per annum.
Total capital investment of the expansion was $120 million, with a 20-month payback, with the mid-cap developer targeting a completed construction date during quarter four of the 2026 financial year.
Additionally, company chair Mark Clark said that coupled with the development of its Mount Gibson gold project, Capricorn has the opportunity to produce 300,000oz per year.
Under the placement, Capricorn said it would issue around 33.3 million fully paid ordinary shares, at an issue price of $6 per share.
Proceeds from the placement would not only eliminate the need for debt financing or mandatory gold hedging, but also fund the expansion and help generate development, exploration and resource growth at Mount Gibson.
This issue price represents a 4.9 per cent discount to the company’s final closing price on October 29, prior to entering its trading halt, along with a 5.8 per cent discount to the five-day volume weighted average price.
Argonaut Securities and Bell Potter Securities acted as both joint bookrunners and joint lead managers to the placement, while Argonaut was also appointed the sole global coordinator to the placement.
In addition, Barrenjoey Markets and Jarden Australia were appointed co-managers.
Capricorn last traded at $6.31.
