Photo by: Bloomberg
PERTH (miningweekly.com) – Explorer Breakaway Resources will raise A$12.4-million through a share placement to fund resource definition drilling and exploration work at the company’s Lake Roe project, in Western Australia.
Breaker reported on Thursday that the company had received binding commitments from institutional and sophisticated investors to take part in the raising, which had been priced at 50c a share.
The capital raising was oversubscribed several times, owing to "overwhelming" demand from institutional investors, Breaker said.
“I believe that the strong demand for the raising reflects mounting evidence that Lake Roe hosts a major new gold system with significant openpit and underground mining potential,” said executive chairperson Tom Sanders.
“The demand for the placement from institutions is particularly pleasing as it is a big vote of confidence by professional investors in the project’s potential.”
Breaker has so far made two separate gold discoveries at Lake Roe and has identified wide, high-grade near-surface gold mineralisation over 1.6 km of a potential 4.4 km strike length of economic interest.
Resource definition drilling will start within the next eight weeks, subject to regulatory approvals.