The additional funding will support the delivery of work programs for the Northern Gold, Northern Area and Southern Area prospects at the Sorpresa project in Central West NSW.
"Immediate progression of work"
Rimfire managing director Craig Riley said: “The successful capital raising by the company of $800,000 before capital raising costs will allow the immediate progression of work programs towards a discovery.
“The support of existing and new shareholders for this rights issue will allow the company to complete drill testing at the Northern prospect, Northern Area and Southern Area over the next few months.
“I look forward to obtaining the results from these programs prior to the end of 2019.”
Rimfire Pacific will allot the additional shortfall shares on August 2 for firm commitment monies received.
The balance of the shortfall is eligible to be placed with investors within 90 days from close of the rights issue at the discretion of the company.
Reconnaissance mapping is in progress in the Northern Area and drilling will begin in early September, subject to completion of landholder clearance processes and availability of preferred contractor drill rigs.
In June the company undertook a reinterpretation of the gold and silver resource at the Sorpresa project which proved “encouraging” enough to continue with its appraisal process.
Rimfire’s aim is to assess if potential exists for a higher-grade, lower tonnage project that can generate near-term positive cash flow.
This reinterpretation work includes results from 11,196 metres of additional drilling in 232 drill holes at Sorpresa between 2015 and 2017.
Rimfire managing director Craig Riley said at the time: “The company continues to also work on pathways to monetise Sorpresa, including deals with third parties.”