Stonewall Resources Ltd (ASX:SWJ) has entered into a share subscription agreement with a global investment house to raise $5 million to complete the reserve drilling at Theta Hill and Vaalhoek.
Theta Hill and Vaalhoek are part of Stonewall’S TGME gold project in South Africa, where the company is progressing towards its goal of restarting gold production at the earliest opportunity.
READ: Stonewall Resources upgrades gold resource to over 5 million ounces
Managing director Rob Thomson said: “With this very favourable placement coupled with the new multi-million ounce global resource, the company now is well positioned to complete resource/reserve drilling for Theta Hill and other surrounding opencut targets, complete feasibility studies and secure the required funding for commencement of gold production.”
Two-tranche placement
Stonewall is raising $5 million from the global investment house on the following terms:
• Tranche 1 share placement of $2 million at an issue price of 1.1 cents per share within 30 days; and
• Tranche 2 share placement of $3 million is subject to shareholder approval and will be issued at a price equal to the 20 days VWAP (volume weighted average price) before the allotment.
The investor has agreed that all shares will be escrowed for 12 months from the completion date.
READ: Stonewall Resources assays support open cut gold potential at Theta Hill area
Stonewall’s exploration programs in South Africa will now be fully funded to complete the reserve drilling at Theta Hill and Vaalhoek.
The funds will also be allocated to environmental/ engineering studies.
A second resource upgrade is expected in coming months when the Theta Hill drilling is completed, adding to the recent 5.1 million ounce gold resource upgrade for the TGME gold project.