EXTRACT FROM RESPONSE TO ASX QUERY 19 FEBRUARY 2019:
"2. Has CTM taken any steps, or does it propose to take any steps, to raise further cash to fund
its operations and, if so, what are those steps and how likely does it believe that they will be
successful?
Consistent with prudent operating and financial practice for an exploration entity in its
position, the Company will continue to review its funding requirements and raise capital as
needed to fund its exploration and working capital requirements. With $1.4 million in cash
at the end of December 2018 and with most field activity for the March quarter being
related to the Itapitanga Project (which, as explained above and as previously announced to
the market, is being funded by the Company’s JV partner, Simulus), the Company is under no
pressing need to raise capital.
As an exploration company, Centaurus is always considering the optimal means of funding
its ongoing activities, planned future activities and the overall development of its assets. In
that regard, funding options include any combination of joint venture, divestment or equity
raise in connection with the Company’s prospective suite of mineral projects in Brazil, which
includes the Itapitanga Nickel Project, the Salobo West Copper Gold Project and the
Jambreiro Iron Ore Project.
The announcement during the December Quarter of the Itapitanga earn‐in and joint venture
transaction with Simulus (a leading battery minerals process group and hence a strategic as
well as financial partner for the Company) is consistent with the above. In parallel, Centaurus
is currently planning for further exploration at its Salobo West copper project (only 15km
along strike from Vale’s world class Salobo mine) pending receipt of a drilling and clearing
licence from the relevant environmental agency in Brazil.
Further, the Company is currently undertaking desktop work to review the Feasibility Study
previously undertaken (in 2013) in relation to its Jambreiro Iron Ore Project, given that the
economics underpinning that project are expected to have improved significantly in the
interim period given the global premium being paid for high grade (+65% Fe), low impurity
ore and the overall rise in the BRL denominated iron ore price in the domestic market.
The Company’s portfolio of assets are not subject to any mandatory minimum expenditure
requirements and it can accordingly control the level of exploration expenditure it incurs
based on the funds that are available to the Company at any given time.
The Company has a track record of successfully raising equity capital as needed to fund the
development of its suite of exploration projects and expects this to continue in the future
whilst the demonstrated potential of those projects remains."
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