Classic Minerals: Great interest in new stocks!

The Australian gold explorer Classic Minerals (WKN A0NA2L / ASX CLZ) plans to start producing gold on its Kat Gap project in just a few months. Obviously there was great interest in supporting the company in this way – a financing that was now completed was three times oversubscribed!

The goal is to get to gold production quickly and to generate income as soon as possible – the route Classic is taking for this is via a mobile production system (Gekko system). The remaining parts of the plant and the ongoing exploration to expand the already known gold deposits are to finance the current capital measure.

In total, Classic took in AUD 1.2 million for the issue of 1,200,000,000 shares at 0.001 cents. Interestingly, it was announced at the same time that it wanted to reward the loyalty of the investors and that, as of January 22, 2021, existing shareholders would then be granted one option for every four Classic shares held, which can be exercised for three years after the issue date at AUD 0.003.

Classic has so far proven a resource of 8.25 million tons at an average of 1.52 g / t gold on its Forrestania gold project, which is also owned by Kat Gap, which corresponds to 403,906 ounces of contained gold. The company plans to submit a new resource estimate for all projects (Kat Gap, Lady Magdalene, Lady Ada) as early as the first quarter of 2021.

At Kat Gap, Classic has so far defined an inferred resource of 975,722 tonnes at 2.96 g / t gold and thus 92,856 ounces, but has recently been able to present promising exploration results – e.g. 2 meters of 116 g / t gold and 4 meters of 76 g / t gold, including 1 meter of 304 g / t gold! So it’s no wonder that the company sees potential for significant, sustained exploration success and, as a result, significant resource growth.

Classic had already submitted the applications for mining licenses and the clearance certificate in May 2020, so they are expected to receive them by the end of December 2020 or the beginning of January 2021. And in order to be able to start as quickly as possible, the equipment for the Gekko production plant had already been started well in advance


It means another significant dilution, but with the funding announced today, Classic Minerals now has funds that should move the company a long way towards the start of production at Kat Gap – and at the same time allow exploration to continue and begin to submit a new resource estimate next year. Financing will probably be necessary again before the Gekko plant goes into operation, but if gold production actually starts as planned and successfully, this could mean at least a significantly reduced financial requirement for a long time and thus a much lower dilution. We are definitely curious!

Subscribe to our free newsletter:
Follow us on Twitter:

Risk warning: GOLDINVEST Consulting GmbH offers editors, agencies and companies the opportunity to publish comments, analyzes and news on This content is intended solely for the information of the reader and does not represent any kind of call for action, neither explicitly nor implicitly are they to be understood as a guarantee of possible price developments. Furthermore, they are in no way a substitute for individual, expert investment advice, rather they are advertising / journalistic texts. Readers who make investment decisions or carry out transactions on the basis of the information offered here act entirely at their own risk. The acquisition of securities involves high risks, which can lead to the total loss of the capital invested. GOLDINVEST Consulting GmbH and its authors expressly exclude any liability for financial losses or the content-related guarantee for topicality, correctness, appropriateness and completeness of the articles offered here. Please take note of our Terms of Use.

In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that clients, partners, authors and / or employees of GOLDINVEST Consulting GmbH can or do hold shares in Classic Minerals and that there is therefore a conflict of interest. Furthermore, we cannot rule out that other stock market letters, media or research firms will discuss the values ​​we have discussed during the same period. Therefore, symmetrical generation of information and opinions can occur during this period. In addition, there is a consulting or other service contract between GOLDINVEST Consulting GmbH and a third party in the issuer’s warehouse (Classic Minerals), which creates a conflict of interest, especially since this third party provides GOLDINVEST Consulting GmbH with payment for reporting on Classic Minerals rewarded. This third party can also hold, sell or buy shares in the issuer and would benefit from an increase in the price of Classic Minerals shares. This is another conflict of interest.

Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizably posted by third parties in the “News” area of ​​this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.

Related Articles

Back to top button