PERTH (miningweekly.com) – ASX-listed Bardoc Gold is hoping to raise A$15-million through a share placement and a share purchase plan (SPP) to fund work at its flagship 2.6-million-ounce Bardoc gold project, in Western Australia.

The junior on Friday said that it had received firm commitments to raise an initial A$12-million through a share placement to strategic investors, priced at 10c a share.

The share placement will comprise 120-million shares, with a one-for-two free attaching option, at an exercise price of 16c each.

An SPP is expected to raise a further A$3-million, with eligible shareholders able to subscribe for up to A$30 000 worth of new shares, also priced at 10c each.

The offer price represented a 9.09% discount to Bardoc’s last closing price, and a 15.19% discount to its five-day volume weighted average share price.

“This highly successful capital raising puts Bardoc in a very strong position. With a strengthened balance sheet, we will have the financial capacity and flexibility to rapidly advance the next stage of our multi-pronged growth strategy in the Kalgoorlie district,” said Bardoc CEO Robert Ryan.

“We see this next phase of activity as very much a continuation of the strategy we have been pursuing over the past two years, with three key elements comprising aggressive exploration to grow our resource base, selective and value-accretive acquisitions and mergers, and the completion of feasibility studies to progress the Bardoc gold project towards development.”

Ryan said that the objective was to rapidly build a sizeable and high-quality gold resource in the Kalgoorlie region by consolidating gold deposits located within economic haulage distance of a potential centrally-located processing facility and continuing to expand Bardoc’s strategic exploration footprint and growth pipeline.

“The strong support shown by current and new sophisticated investors and institutions reflects the fact that we are already well advanced towards achieving these goals as a result of the exploration success achieved this year, and the value accretive acquisitions we have announced.

“The recent acquisitions of the Mayday, North Kanowna Star and Vettersburg projects shows that there are still excellent opportunities to acquire high quality gold projects with significant exploration upside in the Kalgoorlie district.

“With the global resource update due at the end of this month, prefeasibility studies will continue with results expected in the first quarter of 2020.”

Ryan said that a portion of the funds raised would also be allocated to long-lead time engineering and environmental studies required for a bankable feasibility study.