PERTH (miningweekly.com) – ASX-listed junior Crater Gold Mining is hoping to raise some A$23-million through an 11-for-2 renounceable rights issue, priced at 1.5c a share.
Crater on Wednesday said that the issue price of 1.5c a share represented a discount of some 25% to the last closing price on December 11, and a 28.57% discount to the 30-day volume weighted average share price.
The entitlement offer is expected to materially reduce Crater Gold’s debt, with proceeds also going towards funding exploration.
A new drilling programme will be launched at the company’s Mixing Zone project, in Papua New Guinea, which will initially consist of eight holes and will focus on extending the existing higher-grade gold mineralised zones at the project.
Additionally, two deep drill holes will also be drilled at the High Grade Zone project, targeting depth extensions, and an initial three-hole programme will also be undertaken at the A2 polymetallic project, in North Queensland.
“The new drilling programme at our flagship Mixing Zone project is aimed at increasing the already established resource at that deposit. Further drilling aims to identify the continuity of higher grade areas in the Mixing Zone and to test areas lateral to the Mixing Zone,” said Crater Gold chairperson Sam Chan.
Chan said that a successful entitlement offer would enable the company to pursue all drilling programmes, as well as provide the working capital to bring the High Grade Zone mining project into full production capacity "very shortly".