PERTH (miningweekly.com) – Junior explorer Sky Metals will raise some A$10.5-million through a share placement to fund exploration work at the Cullarin gold project, in New South Wales, where it is earning an 80% interest.
The company has received firm commitments for the placement of more than 47.72-million shares, at a price of 22c each to sophisticated and institutional investors.
The placement will be conducted over two tranches, with the first consisting of more than 22.72-million shares, and the second of 25-million shares. The first tranche placement will be conducted under the company’s existing placement capacity, and will raise an initial A$5-million, while the second tranche, raising A$5.5-million, will be subject to shareholder approval.
Sky CEO Mark Arundell said on Monday that the placement would allow the company to swiftly progress drilling and other exploration activities at Cullarin, and to follow up diamond drilling of the outstanding shallow results obtained from a recent drill hole on the Hume Target.
“The intersection of exceptional shallow gold mineralisation in Sky’s drillhole indicates the potential of a significant gold system at the Cullarin project. This placement will enable Sky to execute an accelerated exploration programme that will initially target extensions to the mineralisation intersected. The exceptionally strong interest in this placement is testament to the quality of Sky’s exploration strategy and ground position,” Arundell said.