PERTH (miningweekly.com) – Junior Stavely Minerals will raise A$4.2-million through a share placement to fast-track exploration at its portfolio of gold and porphyry copper/gold projects in Victoria, Tasmania and Queensland.
The company will issue 12.3-million shares at a price of 26c to sophisticated and institutional investors to raise an initial A$3.2-million. Concurrently, Stavely will also place 7.7-million shares to Titeline Drilling as advance payment for A$2-million of drilling services to be completed over the next 12 months.
The share issue to Titeline will be done within the company’s placement capacity.
Furthermore, Stavely will undertake a share purchase plan, also priced at 26c each to raise a further A$1-million to allow existing shareholders to participate in the capital raising.
The company on Thursday said that the funds raised will be used to progress drilling programmes and to complete the acquisition of the Beaconsfield gold processing facility, in Tasmania, as well as for working capital.
“All of our projects have excellent potential, especially given the significant recent drill results generated by the copper/gold porphyry exploration drilling at Thursday’s Gossan and the high-grade gold potential at the historical Mathinna goldfield in Tasmania, which has produced some 300 000 oz of gold at an average grade of 26 g/t,” said Stavely executive chairperson Chris Cairns.
“All of these projects have outstanding potential to deliver significant discoveries and we are hopeful that the funding will allow us to maintain a steady flow of exciting drilling results and lead us towards the company-changing breakthrough we have been striving for.”