Shares come with a 1:2 attaching option exercisable at $0.10 and expiring 27 June, 2019.
Proceeds will fund drilling and advancement of Argent’s key projects in New South Wales and Tasmania – 100% owned Kempfield Polymetallic Project, 70% owned West Wyalong Project and the Loch Lily Project where Argent can earn up to 90%.
These projects provide exposure to the precious and base metals sectors featuring gold, silver, lead and zinc.
Argent has just recently increased its interest in West Wyalong up to 70% from 51% by satisfying earn in requirements in the joint venture and will move forward on a 70:30 basis.
Use of funds
Proceeds of from the placement will fund:
Kempfield Polymetallic Project (100%, New South Wales)
Work to advance the planned mineral resource estimate update including:
- Metallurgical testing of existing drill core to determine base and precious metal recovery potential in separate concentrates in a flotation processing environment; and
- Resource infill drilling of up to 5,000 metres of predominantly reverse circulation drilling.
West Wyalong Project (70%, New South Wales)
- Completion of the six hole 2,300 metre diamond drilling program testing for porphyry copper gold and epithermal gold at the Theia and Narragudgil targets; and
- Drilling is 50% co-funded by the state government up to a total of $200,000 awarded on merit-based assessment by independent panel of experts.
Loch Lilly Project (right to earn 90%, Tasmania)
- Inaugural drill test of analogous Western Tasmania Mt. Read volcanics potential identified in the Loch Lilly - Kars Belt located 980 kilometres south of Broken Hill;
- Two diamond holes will be drilled up to 500 metres depth, each to test the walk-up geophysics targets of Eaglehawk and Netley;
- The direct per-metre drilling costs are 75% co-funded by the state government up to a total of $150,000 also awarded on merit-based assessment by independent panel of experts; and
- Earn initial Argent interest of 51% by completing the drill test.
Assays pending from West Wyalong
The drilling program at West Wyalong has been completed ahead schedule with a total of 2,427 metres completed over six holes.
Detailed logging of the drill core has commenced, which will be followed by cutting of the core and assaying.
Based on the visual observations to date, Argent envisages submitting up to 70% of the diamond drill core for assay.