The Carpentaria Resources Ltd (ASX: CAP) share price is starting the week off with a bang. This comes after the mineral exploration company provided an update on its entitlement offer announced on 6 July.
At the time of writing, Carpentaria shares are up 9.68% trading at 17 cents.
What did Carpentaria update the ASX with?
In today's statement, Carpentaria advised it has raised roughly $11.83 million through its entitlement offer. This represents an interim shortfall of $15.62 million, with the remaining amount to be issued to underwriter Shaw and Partners.
The $27.45 million offer was presented to shareholders following the company's successful $35.6 million placement.
Together, the combined funds will be used for the Hawsons Iron Project bankable feasibility study.
According to Carpentaria, the Hawsons project, near Broken Hill, has been identified by independent analysts as the world's leading undeveloped high-quality iron ore concentrate and pellet feed project.
A pre-feasibility study completed in 2017 revealed the open-pit mine had a probable magnetite iron ore reserve of 755 million tonnes.
Carpentaria has a 68.69% interest in the project, with the remaining 31.31% owned by Pure Metals.
Carpentaria executive chairman Bryan Granzien previously commented:
Early in the year, we carried out strategic planning sessions in respect of the Hawsons Iron Project and its financing. We developed a plan and are carrying it out. BFS funding is a significant part of that plan, and we are confident this will lead to the successful development and operation at Hawsons.
The entitlement offers allowed participating shareholders to subscribe at 15 cents per share for every 2.6 Carpentaria shares. Once the shortfall has been completed, it's expected that 182.98 million shares will be added to the company's registry.
Carpentaria will release the final shortfall number to the ASX sometime later this week.
About the Carpentaria share price
Since the beginning of May, the Carpentaria share price has soared to astronomical levels. Just this month, the company's share price touched a multi-year high of 22.1 cents. Over the past year, Carpentaria shares are up more than 650%, and 300% year-to-date.
Carpentaria commands a market capitalisation of roughly $83 million, with a total number of 489 million shares on issue.
