Carnavale Resources Limited (ASX: CAV) has announced it will raise approximately $3 million through a placement to professional and sophisticated investors. Carnavale Resources is focused on exploring and developing resource projects. Its primary focus is advancing the Kookynie Gold Project in the Eastern Goldfields of Western Australia.
The placement will involve issuing approximately 857.1 million shares at $0.0035 per share. The company has also announced a non-renounceable pro rata entitlement offer to eligible shareholders, aiming to raise up to an additional $4.09 million. Directors Ron Gajewski and Andy Beckwith have committed to take up their full entitlement and sub-underwrite for an additional $500,000 each, demonstrating strong confidence in the company’s direction. Canaccord Genuity (Australia) Limited acted as lead manager to the Placement.
The funds raised will be used to immediately commence a Bankable Feasibility Study (BFS) for the Kookynie Gold Project. Carnavale has engaged key experienced consultants to bring the project to a shovel-ready status. The company is already in discussions with mining contractors to determine the best approach to unlock the contained value in the project, with a goal to have the project approved for mining during 2026. Carnavale is also restructuring its board, with Andy Beckwith moving to Non-Executive Chairman.
The company intends to seek shareholder approval to consolidate its issued capital at a ratio of 15:1. This consolidation aims to create a more appropriate and effective capital structure to facilitate continued growth and investor interest. As an incentive, key personnel retention and to better align the interests of Board members, key staff and Kookynie Gold Project technical consultants the Company proposes to issue incentive securities after Shareholder approval at the forthcoming AGM.
