Cazaly Resources has raised N$52,4m (A$4,25m) from an oversubscribed placement and selling its shares in Equinox Resources to Kobala Investments.
The oversubscribed placement of 69,6 million shares raised N$25,9m (A$2.1m) while selling 15 million shares in Equinox Resources brought in N$26,5m (A$2,15m).
The Kobala Investments deal, effective on 7 January 2024, entails that Cazaly Resources retains its royalties in all future transactions at the Equinox-owned Hamersley iron ore project in Pilbara, Western Australia.
Cazaly managing director Tara French said this capital raising and the opportune sale of the Equinox holding puts the company in a powerful position to accelerate its work on key lithium and rare earth assets.
“Cazaly’s pipeline of exciting critical mineral projects presents excellent opportunities for new discoveries to create value for our shareholders. We very much appreciate the support of all new and long-standing shareholders, and I look forward to keeping the market updated with our progress,” French said.
The ASX-listed company wants to use the money to develop its projects in Namibia, South Africa, Canada, and Australia.
Cazaly owns the Kaoko Lithium Project and the Abenab Rare Earth Elements Project in Namibia. There is the Halls Creek project in South Africa, the Ashburton gold project, the McKenzie Springs nickel and graphite project, and the Mt Venn gold project in Australia. The other projects are the Sundown Project and Carb Lake in Canada.
