Hot on the heels of acquiring highly prospective Namibian cobalt tenements at the Kunene Kobalt project, Australian minerals explorer Cazaly Resources (ASX:CAZ) has announced a capital raising of $1,540,000 before costs.
Cazaly intends to place a total of 28.5 million shares with an issue price of 5.4 cents per share.
The cash injection will help the company continue to explore and develop its projects and notes that the funding will be used primarily on the Kaoko Kobalt project.
The company announced its intention to acquire the Kaoko Kobalt on April 13, citing the project’s prospective location, adjoining Celsius Resources’ Opuwo cobalt –copper bearing ‘DOF’ horizon and positioned approximately 750km from port of Walvis Bay.
The region is increasingly recognised as an emerging cobalt bearing belt that has been historically underexplored.
In order to acquire the project Cazaly is acquiring all of the capital in Australian unlisted company Kunene North, which holds a joint-venture agreement with a local Namibian company, which owns the exploration license over Kaoko Kobalt.
At the time of the project acquisition Cazaly joint managing director Clive Jones noted the importance of the timing of the investment:
This is an ideal time to be exploring for large resources of cobalt where we are seeing cobalt prices continuing to surge on the back of growing concern that future supplies may be unable to meet burgeoning demand.
“We are currently finalising access to the ground and are looking forward to commencing our maiden field work shortly,” he said.