Candente Copper Corp. (TSX: DNT) has entered into an agreement to complete a private placement with Nascent Exploration Pty. Ltd., a wholly owned subsidiary of Fortescue Metals Group Ltd, to raise C$4M.
“We are very pleased to announce a premium to market equity financing which will provide working capital to further advance the Cañariaco project inclusive of community engagement and permits that will allow drilling of several high priority targets in 2023,” Giulio T. Bonifacio, Executive Chair of Candente Copper, said.
“The Private Placement is a further strategic endorsement by Fortescue for the Cañariaco copper project, one of the top ten undeveloped copper resources in the world of which most is classified as measured and indicated.”
Pursuant to the Private Placement, the company will issue to Fortescue an aggregate of 22,222,222 Shares at a price of C$0.18 per Share. The price per Share of C$0.18 represents a premium of 26% to the five-day value weighted average price of the Shares ending the trading day before the subscription agreement in respect of the Private Placement was executed.
Fortescue currently holds 52,900,000 Shares, representing 19.4% of the outstanding Shares on a non-diluted basis, and 17.7% on a fully diluted basis. Upon completion of the Private Placement, it is anticipated that Fortescue will hold 75,122,222 Shares, representing 25.4% of the outstanding Shares on a non-diluted basis and 23.4% on a fully diluted basis.
Private Placement proceeds of $3,000,000 will be used for further development of the company’s advanced-stage Cañariaco copper project and for general working capital purposes. The remainder of the Private Placement of C$1,000,000 will be used to repay the principal amount of the loan advanced by Fortescue to the company, as announced in the Company’s press release dated 22 September 2022.
For further information please visit: https://candentecopper.com/
