Caeneus to evaluate “additional investment opportunities”
Caeneus Minerals (ASX:CAD) has confirmed it is on the lookout for further investment opportunities after raising over $1.2 million from a placement.
The primarily lithium player told its investors today that it had raised $1.23 million from the issue of over 410 million shares at 0.3c each to sophisticated and institutional investors.
It said the raising was primarily aimed at beefing up its exploration budget at its Lida Valley and Muddy Mountains projects – but did not rule out using some of the cash for “additional investment opportunities”.
It is not guaranteed that the company will find an adequate investment, though.
At the very least, the boost in exploration cash will be a welcome development for the company as it seeks to ramp up its lithium efforts in the Nevada desert.
It acquired the projects from Nevada Metals in March this year – and has since been focusing on exploration in an effort to prove up a lithium resource.
Most recently it conducted a ground-borne survey – which confirmed the presence of a significant gravity low in the east of the company’s tenements.
A gravity low is read as a predictor of the presence of a sedimentary basin which can contain evaporate sediments and lithium-bearing brines.
Stretching 1.5 to 2km wide and 3km long, CAD is confident that the gravity low indicates the presence of these lithium brines.
The basin discovered in the survey extends beyond the northeast boundary of CAD’s initial leases which have since been amended to include the unclaimed portion of the basin.
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The location of the project is being read as a major bonus for CAD – as it’s within driving distance of Tesla Motor’s Gigafactory, which is being slated as possible re-shaping world lithium demand.
Muddy Mountain is a potential high impact ‘district-scale’ lithium clay project, with strongly anomalous lithium up to 1000 parts per million lithium previously hit as part of historical drilling.
The Lida Valley Project is a significant regional Intermontane Basin with a drainage area of approximately 150km2.
It is considered by CAD to be an ideal location for the development of lithium rich brine deposits.