PERTH (miningweekly.com) – Gold hopeful Echo Resources will raise A$15-million through a share placement to fund its exploration growth strategy at its Yandal project, in Western Australia.
The ASX-listed junior will raise an initial A$11.3-million through a first tranche placement of 87-million shares, at a price of 13c each, under its existing placement capacity, from domestic and international institutional investors.
A second tranche of some 28-million shares, to raise a further A$3.7-million, will be subject to shareholder approval. A shareholders meeting will be held on June 10 to allow shareholders to vote on the second tranche placement.
Echo’s largest shareholder Northern Star Resources has subscribed for some A$3.4-million in the placement on a pro-rata basis.
Meanwhile, the company on Monday announced that it would also undertake a share purchase plan to raise up to A$3-million, allowing existing shareholders to participate in the capital raise at the same issue price as the placement. Eligible shareholders will be allowed to subscribe for an additional A$15 000 worth of shares.
The funds raised under the placement will provide Echo with sufficient cash reserves to fund its exploration strategy, which will include 64 000 m of greenfield drilling, 12 000 m of brownfield drilling and a further 15 000 m of drilling at advanced targets.