PERTH (miningweekly.com) – Minerals explorer Strickland Metals is hoping to raise A$7-million to fund drilling works at its Yandal gold projects, in Western Australia.

The ASX-listed company on Thursday announced the placement of 80-million fully paid ordinary shares, at a price of 5c each, to sophisticated and institutional investors to raise an initial A$4-million.

The placement will be done in a single tranche under the company’s existing placement capacity.

In addition, Strickland would also undertake a share purchase plan (SPP) to raise an additional A$3-million, offering existing shareholders the opportunity to subscribe for up to A$30 000 worth of new shares in the company.

The SPP will open on August 18 and close on September 9.

Strickland CEO Andrew Bray said on Thursday that funds raised would go to support the addition of a third rig at the Millrose deposit, expanding drilling programmes at the Yandal operations.

“This year’s drilling campaigns at our flagship Millrose gold project have continued to deliver results exceeding our expectations. They have also contributed enormously to our understanding of the geology and controls on mineralisation, which underscores our decision to add an additional drill rig,” said Bray.

“The placement and SPP we have announced today allows us to maintain our momentum at Millrose with a focus on initially drilling the full extent of the near 13 km gold structure, before returning to newly identified areas to undertake resource drilling and ensuing study work.

“The raising will also allow us to temporarily move the third rig to our Earaheedy project to undertake a series of programs targeting further zinc/lead mineralisation at Iroquois and the recently announced prospect, Malecite.

“We are pleased that the evolving Strickland story has resonated so strongly with so many existing investors, and also welcome new shareholders to the register through the placement. We are also pleased to offer all shareholders the opportunity of funding the company's exploration growth through the SPP."