PERTH (miningweekly.com) – ASX-listed Investigator Resources will raise A$4.2-million to fund exploration activities at its Paris silver project in South Australia.

The company has received firm commitments for the placement of 100-million fully paid ordinary shares at a price of 4.2c each, representing a 16% discount to Investigator’s last trading price and a 17% discount to its 15-day volume weighted average share price.

Participants in the share placement will receive one option for every two shares subscribed for, with an exercise price of 6.3c each and an expiry date of March 2025.

“We are delighted with the support for this raising at a time of some uncertainty in the capital markets, particularly from Jupiter, our largest shareholder, and existing shareholders, as well as seeing some new institutions come onto the register,” said Investigator MD Andrew McIlwain.

“Planning to raise funds to support our ambitious 2023 work program has been under consideration for some time. While there is rarely a perfect time to come to market, Investigator’s directors took the pragmatic view not to start 2023 with investors knowing that a raising of funds during the year would be likely. With this raising adding to our current cash balance, we can focus on delivering the key exploration outcomes planned in 2023.”

McIlwain said that the company’s key focus and priority remained on the advancement of its Paris silver project towards the completion of the definitive feasibility study.

“A key component of this work will be targeting the economic recovery of the lead contained in the resource, which has the potential to add significant upside to the project’s value. At the completion of the current drill program targeting the southern extension of the Paris resource, anticipated in late January, the drill rig will move to Apollo to follow up on the successful drilling undertaken earlier this year.”

In addition to the share placement, existing shareholders on the register on January 25 will also be offered one loyalty option for every five shares held, at a price of 1c per option. Investigator will seek to list these options.