Tyranna Resources Ltd (ASX:TYX) has received strong market support for a two-stage capital raising program, with the new funds to advance exploration at the company’s key Jumbuck Gold Project in South Australia.
Firm commitments have been received for a placement at $0.017 to raise $1.7 million, which will include a 1 for 1 free attaching $0.04 option with a four year expiry from date of issue.
Tyranna will now open a Share Purchase Plan (SPP) for eligible shareholders to purchase up to $15,000 or shares, with the SPP capped at $1 million.
Bruno Seneque, managing director, commented:
"With drilling at Typhoon nearly finished, the Tyranna technical team will test their new approach to the geological model with drilling to continue at Greenewood.
"This is definitely an exciting time for Tyranna shareholders.
"We feel that we are now at a catalyst change in the development of this company and I look forward to updating our shareholders over the coming quarter."
The Typhoon gold prospect is located 35 kilometres from the operating Challenger Gold Mine, which is owned by Tyranna’s joint venture partner, WPG Resources (ASX:WPG).
The drilling at Typhoon follows up a successful first phase drill program which resulted in multiple drill holes intersecting shallow high grade gold intercepts.
Assays from phase one drilling included intersections of: 13 metres at 3.88 g/t gold from 47 metres, and featured grades of up to 1 metre at 50.7 g/t gold.
Chairman Joseph Pinto shows support
Joseph Pinto is the company's chairman and director, and he will further align himself with the success of the company by subscribing for in the placement up to $130,000 worth of shares.
This would take Pinto's stake past 40 million shares.