Capricorn Metals raises $200m for Karlawinda expansion

The news: Capricorn Metals has raised $200 million to help the gold miner fully fund the expansion of its Karlawinda mine and the development of its Mount Gibson project, via an institutional placement announced on Wednesday.

The numbers: Capricorn said it has received firm commitments for its institutional placement of new shares to raise $200 million, before costs, at an issue price of $6 per share.

Capricorn shares last closed at $6.31 per share.

The context: Capricorn said the placement was strongly supported by existing institutional shareholders and Australian and international institutional investors.

The placement proceeds, together with current cash reserves and expected future free cash flow generated from Karlawinda, are expected to fully fund the development of the Karlawinda and Mount Gibson projects in Western Australia.