Small Cap: Private placement with a lot of international interest

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At the Kat Gap Project, Classic Minerals is already commencing open pit excavation.

Private placement with great international interest

After the legal requirements for gold production at the Kat Gap gold project were in place this week through the issuance of the final mining permit by the Department of Mines, Industry Regulation and Safety, Classic Minerals has also taken an important step forward in the financial area, by successfully placing new shares for the equivalent of 1.5 million Australian dollars (AUD).

The new shares, brokered by a leading Melbourne firm, were subscribed to by Australian and international shareholders from around the world. There was a lot of interest in the new shares, which were issued at a price of A$0.00085. The capital measure could therefore be carried out without delay and to the full extent.

Classic Minerals is funding the mining of the bulk sample and preparation for gold production at Kat Gap

The issue of the new shares, which also carry an option, is expected to be completed by March 21, 2022. One option will be issued for every four new ordinary shares. It is exercisable until 3 February 2024 and entitles the holder to purchase one additional Classic Minerals share at a price of AUD$0.003.

Classic Minerals will use the newly raised funds to continue the bulk sampling at Kat Gap. In addition, the fresh funds will be used to fund work and expenses to transition to full mining operations at Kat Gap over the coming weeks and months.

Beginning of opencast mine for large samples with equipment 140322
The first 5 meters of the planned opencast mine have been completed

More security for everyone involved

For the invested investors, this private placement means dilution on the one hand, which is always unpleasant. On the other hand, Classic Minerals also gains the certainty that the mining of the bulk sample has been successfully completed and that it contains Gold can be processed in the Gekko plant.

Against this background, the successful placement also represents a gain for the previous investors, because a mining permit that cannot be implemented due to a lack of financial resources is not in their favor in the long term either. Now, however, shareholders, old and new, can rejoice as gold production at Kat Gap is gradually approaching.

FGP open pit 271020
It could look like this on Kat Gap – Historical
Lady Ada open pit mine

Kat Gap Survey Map 070920

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project map

Values ​​included: AU000000CLZ3