PERTH (miningweekly.com) – Junior Strickland Metals will raise A$4-million in a share placement to institutional and sophisticated investors to fund ongoing exploration work at its flagship Yandal gold project, in Western Australia.
The ASX-listed company will place 125-million shares at a price of 3.2c each under its existing placement capacity, meaning it would not require shareholder approval.
The company’s directors have also committed to support the placement by investing a combined A$225 000, accounting for just over 7-million shares, subject to shareholder approval.
“We are delighted to have successfully raised A$4-million largely from our existing shareholder base. The company is extremely grateful for the ongoing support of its shareholders, particularly some of the major shareholders who cornerstoned the placement,” said Strickland CEO Andrew Bray.
“The funds raised will allow Strickland to continue its highly effective and successful exploration programmes at its flagship Yandal gold project, the results of which are feeding into an updated mineral resource. This is due to be released to the market in the current half-year period.”
Bray said the funding would also go towards several diamond holes that would be drilled at the Iroquois project in the coming weeks to test the main feeder structure, as well as an interpreted easterly extension of the mineralisation. This drilling will occur prior to the planned demerger and initial public offering of Iroquois, and is designed to provide a stronger understanding of the mineralisation.