PERTH (miningweekly.com) – Junior Carnaby Resources will raise A$4-million through a share placement and share purchase plan (SPP) to fund exploration work in Western Australia and Queensland.
The bookbuild for a A$3-million share placement has been completed, with Carnaby expected to raise an initial A$2.6-million through a first tranche placement, priced at 30c a share, under the company’s existing placement capacity.
A second tranche of shares will be issued to directors of the company, raising A$350 000, subject to the completion of the first tranche placement and shareholder approval.
The SPP, which will also be priced at 30c a share, is expected to raise a further A$1-million.
“Carnaby welcomes the significant support demonstrated for the placement by existing and new shareholders, including high quality resource institutional investors. In conjunction with the Tick Hill tailings sale and existing cash, the placement provides Carnaby with a strong financial footing to scale up and accelerate the exploration and development of its Strelley and Tick Hill projects,” said MD Rob Watkins.
A maiden 8 500 m aircore drilling programme at the Strelley project will start in October this year, followed immediately by a 3 500 m reverse circulation drilling programme.
At the Tick Hill project, in Queensland, drilling is expected to start in early November.