Draig Resources Ltd (ASX:DRG) has completed an oversubscribed share placement to institutional and sophisticated investors to raise $8 million at 20 cents per share.
The placement received strong support from new institutional investors in Australia, Asia and North America as well as strong support from existing institutions and sophisticated investors.
A forgotten treasure
Draig will use the new funds to advance its Bellevue Gold Project located 400 kilometres northwest of Kalgoorlie in Western Australia.
Notably, the historical Bellevue Gold Mine was one of Australia’s highest grade gold mines producing around 800,000 ounces at 15 g/t gold.
READ: Draig Resources aims to unlock the potential of one of Australia’s historic high-grade gold mines
Draig believes Bellevue will provide a significant opportunity to apply modern exploration techniques to a historically significant Western Australian gold mine that is poorly understood and under-explored.
Multiple high priority gold targets identified
Draig commenced exploration at Bellevue in mid-2017 for the first time and only a few months later revealed a new gold discovery at the project.
Recent drilling results from the new Tribune Lode discovery include:
• 7 metres at 27.5 g/t gold from 92 metres (including 5 metres at 37.5 g/t gold);
• 5 metres at 16.5 g/t gold from 25 metres; and
• 12 metres at 12 g/t gold from 68 metres.
Draig will use the new funds to support ongoing exploration activities including a resource estimate which is expected to be released in the third quarter of 2018.