Successful Capital Raising Fuels Cygnus Metals Limiteds Growth

Highlights:

• Capital Raise Success: Cygnus Metals Limited (ASX: CY5) secured firm commitments of A$11 million through a share placement, driven by strong demand from institutional and sophisticated investors.
• Strategic Use of Funds: Proceeds from the capital raise will primarily support exploration and resource development at the Chibougamau Copper-Gold Project, as well as advancing lithium exploration initiatives in James Bay.
• Positive Management Outlook: Managing Director David Southam emphasized that the merger with Dore Copper Mining Corp. presents significant value creation opportunities, with the successful capital raise reflecting strong investor confidence in the merged group's future potential.

Cygnus Metals Limited (ASX: CY5) has successfully secured firm commitments totaling A$11 million through a share placement, amidst strong demand from institutional and sophisticated investors. This strategic capital raise sets the stage for an extensive work program at the company’s Chibougamau Copper-Gold Project in Canada, which follows its planned merger with TSXV-listed Dore Copper Mining Corp.

Details of the Placement

The share placement is priced at A$0.072 per share, reflecting a 10% discount to the last closing price of A$0.08. The response was overwhelmingly positive, leading to heavy scaling back of applications. The placement will be executed in two tranches: Tranche 1 aims to raise approximately A$6.8 million, while Tranche 2 is expected to generate around A$4.2 million, pending shareholder approval.

At the time of writing, the completion of Tranche 1 will leave Cygnus with approximately A$9.6 million in cash (before costs), bolstered by Dore Copper's existing cash of about A$5 million. This capital will support not only exploration and resource development at Chibougamau but also advance the company's lithium exploration initiatives in James Bay.

Management’s Perspective

David Southam, Managing Director of Cygnus Metals, expressed enthusiasm about the merger with Dore, stating it presents an outstanding opportunity to create value for shareholders by combining a high-potential copper asset with a proven management team. He emphasized that this successful capital raise indicates strong investor confidence and positions the merged group well for future endeavors.

The indicative timetable for the placement includes the trading halt lifting on October 17, 2024, and the settlement of Tranche 1 Shares expected by October 22, 2024. A general meeting for shareholder approvals is targeted for mid-December 2024.

With these developments, Cygnus Metals Limited is poised for significant growth, leveraging the new funds to unlock the value of its copper project while advancing its strategic objectives.

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