Cannindah Resources Raises AU$5 Million to Advance Mt Cannindah Copper-Gold Project

Highlights:

• Cannindah Resources Limited (ASX: CAE) successfully raised $5 million through a placement of 125 million shares at $0.04 per share to fund exploration at its Mt Cannindah Copper-Gold Project.
• The funds will support new drilling programs aimed at expanding the 14.5Mt @ 1.09% CuEq resource and testing a large-scale IP anomaly southwest of the current resource.
• The placement, led by Canaccord Genuity, is expected to settle on October 25, 2024, with exploration set to begin shortly after.

Cannindah Resources Limited (ASX: CAE) has successfully raised AU$5 million through a placement to institutional and sophisticated investors. The capital raise will support the company's flagship Mt Cannindah Copper-Gold Project in Queensland. At the time of writing, the placement saw 125 million fully paid ordinary shares issued at AU$0.04 per share, representing a 13% discount to the last traded price of AU$0.046.

Capital to Fund New Drilling Programs

The funds raised will be used to recommence drilling activities at the Mt Cannindah site, where Cannindah plans to expand its significant JORC resource, which currently stands at 14.5 million tonnes at 1.09% CuEq. The drilling will also test a large-scale IP anomaly located 700 meters southwest of the current resource area, potentially doubling the resource footprint. The company is expected to begin these exploration activities within weeks once the drilling rigs are mobilized.

Strategic Resource Expansion

Managing Director Tom Pickett expressed confidence in the capital raise, stating that it positions Cannindah to advance its exploration efforts quickly. "The receipt of these funds allows us to move forward with our drilling program to expand the existing resource and explore a promising new target," said Pickett. He added that the company's goal is to significantly grow the Mt Cannindah Copper-Gold Resource, which is already one of their substantial assets.

The placement was strongly supported by new investors, with settlement scheduled for October 25, 2024. The lead manager for the placement was Canaccord Genuity (Australia) Limited, which will receive a 6% commission and five million options as part of the deal.

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