Centaurus Metals Ltd. outlined plans to raise A$10 million for exploration and development at the Jaguar nickel sulfide project in Brazil, which it is acquiring from Vale SA.
The Vale board recently approved a deal under which Centaurus will secure the Jaguar property by transferring the Salobo West copper project, also in Brazil.
Centaurus said Sept. 10 that the placement will comprise 1 billion shares in two tranches at 1 Australian cent apiece, representing a 9.1% discount to its last closing price of 1.1 Australian cents per share on Sept. 6.
The first tranche is expected to be allotted Sept. 16, while the second tranche is subject to shareholder approval, with a meeting planned in late October.
The offering drew support from a number of small-cap institutional investors in Australia and abroad, including clients and affiliates of the Sprott Group, as well as sophisticated investors, according to the company.
Bell Potter Securities Ltd. served as lead manager and book runner to the placement, with Orimco Pty. Ltd. as co-lead manager.
