Cygnus Gold Launches AU$11 million Equity Raising to Fund Exploration and Growth

Highlights:

• A$11M Equity Raise: Cygnus Gold (ASX: CY5) has launched a two-tranche institutional placement to raise AU$11 million, with Tranche 1 raising AU$6.8 million and Tranche 2, conditional on shareholder approval, to add AU$4.2 million.
• Discounted Offer Price: The placement is priced at AU$0.072 per share, offering a 10% discount to the last closing price of AU$0.08, aimed at accelerating exploration and growth.
• Use of Funds: Proceeds will fund resource growth, ongoing studies, lithium exploration, and general working capital, supporting Cygnus' acquisition of Doré Copper Mining Corp. and future projects.

Overview of the Transaction

Cygnus Gold (ASX: CY5) is set to acquire 100% of Doré Copper Mining Corp. under a statutory plan of arrangement. This merger will expand Cygnus' exploration capabilities, particularly with the Chibougamau Copper and Gold Project. The deal is contingent on Doré shareholder approval, which is expected in mid-December 2024.

Equity Raising Details

To support this acquisition and future growth, Cygnus has announced an AU$11 million equity raise through a two-tranche institutional placement. The first tranche will raise AU$6.8 million, and the second tranche, conditional on shareholder approval, will add an additional AU$4.2 million.

The offer price is set at AU$0.072 per share, representing a discount of 10% to the last closing price of AU$0.08 on October 14, 2024, at the time of writing.

Use of Funds

The funds raised will accelerate resource growth, continue permitting and studies for the Chibougamau Project, advance the lithium exploration pipeline in James Bay, and provide general working capital.

Joint Lead Managers Canaccord Genuity and Euroz Hartleys Limited are leading the placement, with Canaccord Genuity advising Cygnus on the transaction.

The completion of this equity raise and merger is expected by late December 2024, setting Cygnus on a robust path for exploration and growth.

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