Celamin Holdings (ASX: CNL) has lodged a prospectus to undertake a A$10 million capital raising as the company switches its focus to North African mining projects.
The company will issue 50 million shares at $0.20 each.
The raising will comprise a priority offer of 5 million shares to eligible shareholders as well as a public offer to other investors.
David Regan, managing director, commented on the milestone:
"This prospectus represents an important milestone in the life of CNL as its shareholders formally decide to change its focus to pursuing mining projects in North Africa."
Late last year Celamin signed the final agreement which cleared the way for the completion of the acquisition of Celamin Limited, which holds the North African phosphate and base metals assets.
The acquisition means that Celamin Limited will become a 100% subsidiary of Celamin Holdings.
Once the company has completed the acquisition and re-listed on the ASX it plans to issue one free loyalty option for every two shares held to eligible shareholders.
The loyalty options will be exercisable at $0.35 on or before 28 June 2013.
Celamin is focused on developing its two flagship phosphate projects Chaketma and Bir El Afou in Tunisia.
Early last month the company confirmed the prospectivity of Bir El Afou through trenching results, which include 9.35 metres at 16.8% phosphate and 8.5 metres at 13.1% phosphate.
What is interesting about the Kef Rebiba plateau is that it is structurally different from the other prospects within the Bir El Afou project, being essentially a flat mesa with the phosphate rich horizon exposed on three sides.
In this regard it is similar to the Gassaa Kebira prospect at Chaketma.
In February at Chaketma the historical results were successfully validated, with the new results comparing remarkably well with the historic results, which has provided Celamin with a major increase in confidence that results from the earlier exploration can be accepted at face value.
Celamin potential not lost on Lion Selection Group
Providing a major vote of confidence in the company's operations, Celamin's substantial shareholder Lion Selection Group again increased its stake recently - which now stands at 15.85%
African Lion 3, an associated entity of Lion Selection Group, acquired a further 1.7 million shares in a share placement, for a total of 8.5 million shares in Celamin.
Lion Selection Group is a mining investment group that primarily invests in companies with projects in Africa and Asia.