Calidus Resources Ltd. said Aug. 15 that it has completed a A$9 million placement to institutional investors from an issuance of 281.3 million shares at 3.2 cents apiece, which will fund the completion of a definitive feasibility study and ongoing drilling to grow the company's resource of 1.25 million ounces at the Warrawoona gold project in Pilbara, Western Australia.
The company will also use the proceeds to complete a regional exploration program testing high priority exploration targets, purchase long lead items for project development, and for general capital working requirements.
Existing shareholder Alkane Resources Ltd. subscribed for shares worth about C$1.2 million, while Keras Resources PLC saw its stake in Calidus fall to 33.8% from 38.9% after it declined to participate in the placement.
In June, the company said that it will advance to a bankable feasibility study at Warrawoona after a positive feasibility study.
