PERTH (miningweekly.com) – Gold and base metals explorer Anglo Australian Resources will raise A$11-million in a single tranche placement to fund exploration at the Mandilla gold project, in Western Australia.
Anglo Australian will issue some 64.7-million shares, at a price of 17c each, to sophisticated and professional investors. The offer price represents a 12% discount to the company’s five-day volume weighted average share price, and an 8% discount to its last trading price.
The shares will be placed under the company’s existing capacity and would not require shareholder approval.
In conjunction with the share placement, Anglo Australian would also undertake a share purchase plan (SPP) to raise a further A$3-million, which will also be priced at 17c a share.
The SPP will open on September 25 and will close on October 14.
“The proceeds of this placement and SPP will provide an outstanding platform for Anglo Australian to unlock the full value of the Mandilla gold project through an extensive exploration and resource definition drilling programme, which will underpin the delivery of a maiden mineral resource estimate during the December 2020 quarter, as well as the commencement of technical and feasibility studies,” said Anglo Australian MD Marc Ducler.
“Following the completion of the 10 600 m reverse circulation programme that’s currently under way, the company plans to conduct an additional 60 km of reverse circulation and 10 km of diamond drilling, with these programmes expected to run continuously throughout most of 2021.”