Crusader Raises $8.5m in Oversubscribed Placement
Perth, Sep 27, 2016 AEST (ABN Newswire) - Brazil focused gold development company Crusader Resources (
ASX:CAS) (CHLXF:OTCMKTS) ("Crusader" or "the Company") plans to accelerate development of the Juruena Gold Project and complete the Bankable Feasibility Study at the Borborema Gold Project, following completion of a Placement ("Placement") to raise a total of $8.5 million (before costs).
The Placement, which was significantly oversubscribed, was to institutional and sophisticated investors in Australia and overseas, including $750,000 from Crusader's Chairman, Stephen Copulos. It was managed by Patersons Securities Limited and co-managed by Tamesis Partners LLP.
In total 65,384,619 Ordinary CAS shares are to be issued, at $0.13 per share, which represents an 18% discount to the 5-day volume weighted average price for the period ending on 21 September 2016.
The funds raised from the placement will see the Company fully funded to accelerate the development of the Juruena Gold Project; complete the Borborema Bankable Feasibility Study; repay the Macquarie debt facility; and for general working capital purposes.
Commenting on the Placement, Crusader Resources Limited Executive Director, Mr Paul Stephen, said,
"This is a pivotal moment for Crusader Resources as we move towards developing our second mine in Brazil and we are grateful for the strong investor support as we accelerate our plans. We now have two advancing gold projects that have different characteristics, but are both excellent stand-alone projects. Brazil represents an amazing opportunity for companies like Crusader and our shareholders where we have the opportunity to discover assets like Juruena and Borborema at such an early stage and take them through to production."
Existing Crusader shareholders will also be able to participate in the current round of capital raising through a share purchase plan ("SPP") to raise up to an additional $1.5 million. Under the SPP, eligible Crusader shareholders will be invited to invest up to a maximum of $15,000 per shareholder. Crusader reserves the right to scale-back acceptances at its discretion.
The Placement shares will be issued in two tranches;
- Tranche 1 - 34,210,317 shares to be issued under the Company's existing capacity. Completion is expected to occur on or before 4 October 2016; and
- Tranche 2 - 31,174,302 shares to be issued once shareholder approval has been obtained at a General Meeting anticipated to occur in November 2016. Completion of Tranche 2 will occur as soon as practical following the meeting.
Further details on the SPP will be released on the ASX and distributed to eligible Crusader shareholders in due course.
About Crusader Resources Limited
Crusader Resources Limited (ASX:CAS) is a minerals company focussed on the identification, acquisition, development and operation of projects in Brazil. Crusader believes that Brazil is a vastly underexplored country with high potential for the discovery of world class mineral deposits. The company has already acquired a diverse portfolio of projects including gold, iron ore, tin, tungsten and uranium and continues to utilise its strong networks in Brazil to identify new opportunities.
Crusader is characterised by a tight corporate structure and features an experienced board of directors who are strongly focussed on the success of the company.
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