PERTH (miningweekly.com) – Junior Lefroy Exploration has received firm commitments to raise A$6.2-million to fund nickel and gold exploration in Western Australia.
The company on Friday said it will place some 38.75-million new shares, at a price of 16c each, representing a 20% discount to its last closing price on September 19, and a 22.2% discount to its 15-day volume weighted average share price.
Lefroy directors have committed to participate in the placement for a total of A$465 000, subject to shareholder approval.
Proceeds from the placement will be used to accelerate exploration at the Location 45 project, some 20-km north of Kambalda and 35-km southeast of Kalgoorlie.
“Lefroy had excellent buy in from existing and new sophisticated and institutional investors, leaving the company well positioned to advance exploration at our nickel and gold assets at Location 45,” said Lefroy chairperson Gordon Galt.
“Planning for drilling and resource expansion work at both Goodyear and Mt Martin is already well progressed and we look forward to delivering what investors want; drills turning and investment going into the ground. The placement received heavy oversubscription, demonstrating strong appetite to firm up and expand our resources by advancing exploration programs, as well as potentially laying pathways towards fast-tracking development.
“We look forward to providing regular updates on progress in the Lefroy project area, which now spans 635 km2 in highly prospective Goldfields country.”