PERTH (miningweekly.com) – Base metals explorer Todd River Resources will raise A$4.2-million through a share placement to fund drilling at its Mt Hardy zinc/copper discovery, in the Northern Territory.
The company has received firm commitments for the first 12.5-million shares, at 8c each, to raise an initial A$1-million from qualified institutional and sophisticated investors.
The placement will be conducted in two tranches, with the first 4.27-million shares to be placed under the company’s existing capacity, and the second tranche of 8.23-million shares requiring shareholder approval.
In addition to the share placement, Todd River will also raise A$3.4-million through a non-renouceable pro-rata entitlement offer, on the basis of one new share for every two ordinary shares held, priced at 8c each.
Funds raised will go towards ongoing exploration in the Northern Territory, Todd River said, with particular focus being placed on drilling and down-hole geophysics at the Mt Hardy project.
“The combined proceeds of the placement and entitlement offer will allow us to accelerate our work programmes at Mt Hardy to seek to enhance the value of this exciting new discovery for shareholders over the coming months,” said Todd River CEO Will Dix.
“The recent drilling and geophysical results from Mt Hardy have identified what we believe to be an exciting new base metals discovery. The results reported to date represent a fantastic start, and we are now perfectly positioned to seek to expand the footprint of the mineralisation at EM1 through a second phase of drilling and to begin to investigate other prospective areas.”
Funds will also be used for general working capital.