Reed Resources (ASX: RDR) has now completed the A$10 million Share Purchase Plan (SPP) component of the $40 million capital raising program, for the purchase of the 2.5 million gold ounce Meekatharra Gold Project.
The SPP was fully underwritten, with shareholders taking up $5.2 million of the $10 million possible allocation, with the remaining $4.8 million underwritten by Bligh Capital Partners.
The $30 million placement portion of the program was heavily oversubscribed, with $16 million completed under the placement capacity and the remaining $14 million pending shareholder approval.
Importantly, since the capital raising was announced, some more top notch intersections beneath the historic Chunderloo Copper Mine at Meekatharra have been discovered
Drilling highlights from earlier in March included:
- 15 metres at 14.7 grams per tonne (g/t) gold and 4.1% copper, which included;
- 7 metres of 28.9g/t gold and 8.3% copper.
If these high grade hits continue, then this ore can be easily transported to the company's three million tonne per annum Bluebird processing facility, which is just three kilometres away.
Highlighting the prospectivity of the area, Chunderloo was the third largest copper producer in the Murchison District prior to the discovery of Golden Grove.
Reed will now fast track drilling into the discovered ore body, and additional targets in close proximity to Bluebird.