Cygnus raises $18.3m to accelerate resource growth and mining studies

Core Viewpoint - Cygnus Metals Limited has successfully raised A$18.3 million through a share placement to accelerate exploration and resource development at its Chibougamau Copper-Gold Project, following promising drilling results at the Corner Bay deposit and Golden Eye prospect [4][7]. Company Summary - Cygnus Metals Limited (ASX: CY5) is focused on advancing its Chibougamau Copper-Gold Project in Quebec, Canada, and has a diversified portfolio that includes lithium and rare earth element projects [12]. - The company aims to enhance resource growth and develop a hub-and-spoke operation model with a centralized processing facility [12]. Financial Details - The share placement involved issuing 212,790,697 fully paid ordinary shares at an issue price of A$0.086 per share, representing an 8.5% discount to the last sale price of A$0.094 [4][7][9]. - Pro-forma cash at bank is expected to be approximately A$23.7 million as of June 30, 2025, before placement costs [4]. Use of Funds - Proceeds from the placement will be allocated to exploration, resource growth, resource conversion, permitting, and advancing studies from a preliminary economic assessment (PEA) completed in 2022 [5][7]. - The company plans to conduct a resource update in the next quarter following a successful drilling campaign [7]. Market Context - The fundraising occurs amid increased M&A activity in the copper sector, highlighting the rarity of high-grade copper/gold projects in mining-friendly jurisdictions [3].