Cassini raises $4.2m

West Perth-based Cassini Resources has completed a $4.2 million share placement, with backing from the chairman of Chinese company Tinci Materials.

Tinci is a manufacturer and marketer of lithium-ion battery materials and is chaired by Xu Jinfu, who was a cornerstone investor in the placement.

Cassini said the placement was also supported by high net worth Asian investors associated with the battery minerals sector.

Ashanti Capital and Sternship Advisers were joint lead managers for the placement.

The proceeds will provide working capital for Cassini, through the period when its joint venture partner OZ Minerals proceeds with a bankable feasibility study on the West Musgrave nickel-copper project.

The money will also be used to fund exploration on three early-stage projects.

The placement was priced at 6.1 cents per share, a 10.3 per cent discount to the last closing price.

Cassini managing director Richard Bevan said the partnership with OZ, which is funding the feasibility study, and the investment by Mr Xu and other investors, reinforced the interest in West Musgrave.