Pioneer Resources (ASX:PIO) has raised $4.3 million from its heavily oversubscribed shared purchase plan (SPP).
Alongside the September share placement which raised $1.3 million, this takes the total capital raising to $5.6 million.
The successful capital raising means multiple drilling programs across multiple projects will be fully funded.
David Crook, managing director, commented: “The company is at a very exciting stage following the identification of Australia’s first caesium resource, and we are working to bring it into production as soon as possible.
“This is in addition to a portfolio of exploration opportunities including the exciting Pilbara gold target at Kangan, emerging caesium, lithium and cobalt targets near Kalgoorlie in Western Australia, plus the advancing Fairservice Project in Ontario, Canada, where drilling earlier this year made very encouraging intersections of spodumene.
“These projects can all be advanced from a well-funded base.”
Putting the funds to use
The proposed use of funds includes:
- Evaluation drilling at four untested Pioneer Dome caesium and lithium targets, commencing in late October;
- Close spaced drilling at the Sinclair Zone caesium deposit ahead of final detailed mine design;
- Confirmation drilling, initially at four Golden Ridge targets where cobalt mineralisation has been identified;
- Step-out drilling on the Fairservice spodumene deposit in Ontario, Canada;
- Preliminary target generation at the Kangan Gold Project in the Pilbara through gold prospecting and mapping along an initial 15 kilometres of unconformity contact and conglomerate horizon.
SPP had to be scaled back
Under the SPP, Pioneer will issue 312.3 million shares priced at $0.014.
Pioneer received SPP applications totalling $4.8 million, however, under the ASX Listing Rules, the company can only issue a maximum of 30% of its issued capital, in this case, 312.3 million shares.
Therefore, it has been necessary to apply the first in first served basis as was specified in the SPP offer documentation.