Cygnus raises A$25m for Quebec copper/gold project
Investors are backing dual-listed Cygnus Metals' Chibougamau copper/gold project in Quebec, Canada, raising A$25-million through a share placement to accelerate exploration, resource growth and technical studies.
The company reported on Friday that it would issue about 156.3-million shares at A$0.16 each, representing a 5.9% discount to the last closing price of A$0.17.
The placement was strongly supported by existing investors, including strategic investor Ocean Partners, which backed the raise citing confidence in the value of the Chibougamau project and long-term copper market fundamentals.
Following the capital raising, Cygnus expects to have about A$35-million in cash and liquid assets, before costs.
Proceeds will be used to expand and upgrade resources, explore several prospects across the project area – including the Joe Mann prospect and Gwillim prospect – and complete permitting work, early infrastructure activities and updated technical studies.
Drilling is already under way at the recently identified Golden Eye discovery, where three rigs are currently operating, while the company plans to test additional high-grade gold/copper targets in the coming quarter.
“We delivered on our strategy at Chibougamau in our first year of ownership with more resources, including more indicated resources, and a new resource at the Golden Eye discovery,” said executive chairperson David Southam.
“This new round of funding is designed to grow our resources further, upgrade more resources into high confidence categories and aggressively drill some recently identified high-grade gold/copper targets.”
Cygnus also plans to complete an updated economic study building on a preliminary economic assessment completed in 2022 by Doré Copper Mining.
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