The company had applied for an exploration licence in the Ashburton region of WA
Castle Minerals (CDT) has entered a trading halt ahead of a capital raise.
The gold exploration company will remain in a trading halt until Tuesday, October 13.
At this stage, it is uncertain how much Castle Minerals is looking to raise and what the funds will be put towards.
Two days ago, the company announced it had applied for an exploration licence covering Success Dome in the Ashburton region of Western Australia (WA).
The exploration licence covers around 220 square kilometres and is located southwest of Castle’s Beasley Creek gold project.
Magnetic and gravity data has already confirmed the area is prospective for gold and base metals mineralisation.
Based on its 2020 financial year report, it looks like Castle will benefit strongly from the upcoming raise.
As of June 30 2020, the miner didn’t have any operating cash generating assets with $434,475 of available funds.
Castle also recorded a loss of $775,247 which is a noticeable increase from last year’s recorded loss of $494,738.
In fact, the company stated in its annual report that the “ability of the entity to continue as a going concern is dependent on securing additional funding through capital raisings and/or sale of interests in projects to continue to fund its operational and marketing activities.”
Castle did manage to raise $973,078 through a placement in July this year. These funds went towards progressing exploration at its gold projects in WA and at its Wa Project in Ghana (West Africa). The money also provided Castle with “greater flexibility to respond to new opportunities.”
Company shares last traded for 1.2 cents on Thursday, October 8.
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