Cygnus Metals Successfully Raises AU$11 million to Fund Canadian Copper Project Expansion

Highlights:

• Successful Capital Raise: Cygnus Metals Limited (ASX: CY5) secured A$11 million in a heavily oversubscribed placement to fund upcoming exploration and development projects.
• Merger with Doré Copper Mining: The raised capital will support Cygnus' planned merger with Doré Copper Mining Corp., positioning the merged group for significant growth at the Chibougamau Copper-Gold Project.
• Strategic Funding Allocation: Funds will be used for exploration, resource development, and advancing the lithium pipeline, ensuring robust project development post-merger.

Capital Raise to Fund Extensive Work Programs

Cygnus Metals Limited (ASX: CY5) has secured firm commitments from institutional and sophisticated investors to raise A$11 million via a well-supported share placement. The placement, priced at A$0.072 per share, represents a 10% discount to the last traded price and will be conducted in two tranches. Tranche 1 will raise A$6.8 million, with Tranche 2 expected to raise an additional A$4.2 million, pending shareholder approval.

Capital Use and Merger with Dore Copper Mining Corp.

The funds raised will support Cygnus’ extensive exploration and development programs at the Chibougamau Copper-Gold Project in Canada, which is set to expand following the company's merger with TSXV-listed Dore Copper Mining Corp. The completion of Tranche 1 will leave Cygnus with around A$9.6 million in cash, with the merged group expected to be well-funded to unlock project value.

Strong Demand Reflects Investor Confidence

Cygnus Managing Director, David Southam, emphasized the strategic significance of the capital raise and merger. "This successful raising demonstrates that the merged group has strong financial backing. With A$11 million in commitments and Doré's significant cash holdings, we are positioned to maximize the potential of the Chibougamau copper asset," said Southam.

Cygnus will continue advancing work programs in collaboration with Doré as the merger moves towards completion. At the time of writing, Cygnus shares were trading at A$0.072 per share.

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