Novo supports Calidus raising

PERTH (miningweekly.com) – Junior explorer Calidus Resources will raise up to A$10-million in a share placement to investors in Australia, Asia and North America.

The ASX-listed company on Wednesday announced that about 243.9-million shares would be issued at a price of 4.1c a share to new and existing institutional and sophisticated investors.

TSX-listed Novo Resources, which in September signed a joint venture agreement with Calidus, would subscribe for A$1.5-million in shares, becoming a cornerstone investor in the ASX-listed junior.

Calidus told shareholders that the proceeds of the placement would be used to expand its exploration efforts at the Warrawoona gold project, in Western Australia, and to build on the current resource base of 410 000 oz at the Klondyke deposit, as well as to advance a number of existing prospects and new targets.

“The equity raising, which was almost three times oversubscribed, follows continued exploration success at the Warrawoona project, and is a great vote of confidence from investors that we can continue to deliver additional low-risk gold ounces with additional funding,” said Calidus MD Dave Reeves.

“Our recent drilling campaign has linked the gap zone at Klondyke, which now provides 2.6 km of continuous mineralisation which is open at depth and along strike in both directions and underpins the large near surface potential that exists at Warrawoona. When combined with the recently acquired Novo joint venture extensions, we have a compelling opportunity to rapidly advance the project.”

Calidus could earn a 70% interest in four exploration and three prospecting licences held by Novo that surround the Warrawoona gold project, in exchange for 20-million shares in the company and a A$2-million expenditure at the project area over a three-year period.