Clara Resources Limited (ASX:C7A) Reports December Quarter Activities
Ashford Coking Coal Project Updates
Clara Resources Limited (ASX:C7A) continues preparations for its Resource and Quality Drilling Program on Exploration Licence EL6234. The program includes ecological assessments, obtaining government permits, and preparing drilling contracts. The drilling will improve the understanding of coal seams, enhance data for a pre-feasibility study, and refine mining plans. Fieldwork is expected to begin in Q2-2025.
Capital Management Initiatives
Clara announced a rights issue intended to raise approximately A$1.66 million, with a shortfall that Cerberus Advisory has agreed to partially underwrite. Recent capital raises included an accelerated entitlement offer which was well-received, bringing in an additional A$0.9 million. The company has also initiated a retail component of the entitlement offer aiming to raise an additional $0.8 million.
Bridging Loan Repayment
The Company successfully repaid its short-term A$1.1 million bridging loan using proceeds from capital raises. Loan variations with Directors are being finalised to extend their loan terms under favourable conditions.
Board Changes and Shareholder Updates
Clara’s Board saw several changes, including the appointment of Richard Willson as Independent Non-Executive Chairman. Recent shareholder notices have indicated intentions to request a general meeting for board resolutions that were previously not approved.
Exploration Activities and Future Outlook
In addition to the Ashford project, Clara is compiling geological data for the Kildanga Nickel/Cobalt project, which may inform future exploration activities. The company is considering various options regarding this project, including possible divestment.
Financial Position
During the December quarter, Clara reported a net cash outflow of A$186,000 from operating activities, maintaining cash reserves of A$300,000. The entity is confident in its ability to raise further funds through current subscription processes.
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