Funds raised will go towards a geological and drilling program as part of due diligence for Oakdale’s Nevada gold assets, meeting the regulatory spend on the company’s graphite project on South Australia’s Eyre Peninsula and to complete a plant upgrade at its Chimu gold processing plant in Peru.
The share purchase plan will issue nearly 60 million fully paid ordinary shares and a further 150 million issued in the placement.
Both will offer one free attaching option for every two shares held and new shares issued will rank equally with existing Oakdale shares on issue.
With gold a new focus for the company, the two new gold projects will give Oakdale shareholders the opportunity to invest into an exploration program in one of the world’s best gold mining jurisdictions.
Oakdale recently signed a binding option term sheet with Alpine Resources (USA) Pty Ltd for its Nevada-based Alpine project.
Exploration at Alpine is targeting epithermal and Carlin-type gold deposits with three properties all with strong multi-ounce gold and silver sample results and multiuple drill targets identified.
Oakdale plans to move all the Nevada properties to drilling in 2019 with the placement funds.
Purchase of the Chimu Gold Plant is now complete, with the ease of vendor payments an important milestone providing security of tenure for ongoing operations.
The carbon-in-pulp gold lixiviation plant is in a highly mineralised area with thousands of small miners in the immediate vicinity, all of which are potential customers for the gold processing business.