PERTH (miningweekly.com) – Junior Middle Island Resources has received firm commitments to raise A$4-million to fund a drilling campaign at its Sandstone gold project, in Western Australia.
Middle Island will place some 3 636-million shares, at a price of 1.1c each under the company’s existing placement capacity.
The offer price represented a 15.4% discount to the company’s last closing price and an 17.3% discount to its five-day volume weighted average share price.
Proceeds from the placement, along with existing cash reserves, will be used to undertake the next phase of exploration and resource drilling at Sandstone, as well as a feasibility study. The drilling will include at least 13 000 m of reverse circulation and diamond drilling to in-fill and extend the four recent discoveries, and increase and update the mineral resource estimates prior to completing a prefeasibility study in the third quarter of this year.
“Given the extraordinary success of the 2020 drilling campaign to date, proceeds of the equity raising will allow the company to embark on a necessarily substantially expanded Phase 2 drilling campaign of at least 13 000 m of reverse circulation and diamond drilling to infill and extend new, supplementary deposits identified at the Sandstone gold project, and complete the project’s prefeasibility study,” said Middle Island MD Rick Yeates.