Breaker Resources NL (ASX:BRB) has received binding commitments to raise $12.4 million through a share placement at $0.50 per share to institutional and sophisticated investors.
The capital raising was oversubscribed several times over due in large part to overwhelming demand from institutional investors.
The proceeds will be used to undertake resource definition drilling and other exploratory drilling at Breaker’s emerging Lake Roe gold project, 100 kilometres east of Kalgoorlie.
The company has so far made two separate gold discoveries - Bombora and Bombora North, at the Lake Roe gold project.
Breaker has identified wide, high-grade, near-surface gold mineralisation over 1.6 kilometres of a potential 4.4 kilometre strike length of economic interest.
Reverse circulation drilling is currently underway at Lake Roe, prioritising the southern 2.2 kilometre zone in preparation for resource definition drilling.
Breaker plans to source a second drill rig to start testing the zone to the north of the Bombora North Prospect within the next fortnight.
Wide-spaced aircore drilling in this area previously intersected up to 7.61 g/t gold.
The demand for the placement from institutional investors can be seen as an important vote of confidence by investors in the project’s potential.
Breaker’s share price has increased by 271% during the past one month, last trading at $0.705.
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