PERTH (miningweekly.com) – Junior gold explorer Pacgold will raise A$3.2-million in a share placement to institutional and sophisticated investors.
The junior will issue 16.7-million shares at a price of 19c each under its existing placement capacity. The company will issue one free attaching option for every two shares subscribed for, with an exercise price of 30c each and an expiration date of the end of September 2026.
The placement of the options will be subject to shareholder approval.
Pacgold on Friday said that proceeds from the placement proceeds will be used to accelerate exploration at the company’s Alice River gold project in Queensland.
An initial phase of drilling is planned to commence in early October targeting high-priority IP geophysical targets at several prospects along the 30 km Alice River fault zone. This initial phase drill programme will include 2 500 m reverse circulation and 1 500m aircore.
“Recent drilling success targeting IP geophysics now provides Pacgold with superior confidence in identifying new priority targets concealed by shallow cover, along the prospective 30km Alice River fault zone,” said MD Tony Schreck.
“While Pacgold’s drilling focus to date has been on step-out drilling to expand the high-grade gold systems at both the Central and Southern targets, our forward strategy will concentrate on the district-scale potential with high-priority targets identified and drilling set to recommence in early October.”