Copper and gold junior Carnaby Resources has announced plans to raise $17 million, in light of filing documents to acquire the Trekelano copper deposit in north-west Queensland.
Rob Watkins-led Carnaby said it had filed documents with Chinova Resources Osborne to secure the deposit, which is located 15km from the Greater Duchess copper-gold project – a joint venture site with DiscovEx Resources.
The junior has already paid a $3 million cash deposit, which will be released from escrow following completion of the transaction.
Once the deal is finalised, Carnaby will transfer around an additional $6 million to Chinova, following an approximate $1 million environmental bond being lodged with Queensland treasury.
The junior is hopeful of a maiden drilling program beginning at Trekelano during the first half of 2025.
In a bid to help fund the acquisition, coupled by further integration and progression of the Greater Duchess pre-feasibility study, the explorer said it would raise $17 million courtesy of a two-tranche placement.
Carnaby will issue around 54.8 million new fully paid ordinary shares at an issue price of 31 cents per share.
This price represents a 13.9 per cent discount to the company’s final closing price of 36 cents on November 25 – and a 16.9 per cent discount to the 15-day volume weighted average price of its shares.
Euroz Hartleys acted as bookrunner and sole lead manager to the placement.
Carnaby also told the market it had entered into a binding toll and offtake term sheet agreement with Glencore in relation to Greater Duchess, with the definitive paperwork for the tolling and offtake to be finalised in due course.
Despite this, the junior has maintained key project optionality and has the opportunity to terminate the tolling agreement with Glencore with two years written notice, should a final investment decision by Carnaby elect it to build a copper concentrator at the site.
Carnaby shares last traded at 39.5 cents, up 10 per cent, as of 10.45am WST.
