Resources & Energy Group raises $3 million through share placement for resource development across gold portfolio

The placement received strong support from new and existing sophisticated investors as well as small cap funds.

Resources & Energy Group Ltd - Resources & Energy Group raises $3 million through share placement for resource development across gold portfolio
New shares will be issued fully paid and rank equally with existing REZ ordinary shares

Resources & Energy Group Ltd (ASX:REZ) has raised $3 million through the issue of about 75 million new ordinary shares at an issue price of 4 cents each.

Funds will go towards exploration drilling and resource development at the Menzies Gold Project in WA and the Mount Mackenzie Gold-Silver Project in QLD.

Wealth of inground resources

REZ chief executive officer Christian Price said the company was looking forward to unlocking the resource potential in the Menzies project’s five mineral zones.

Price continued: “There has been increased transaction activity in the Menzies region and an awakening of resource companies and investors to the rich high-grade mining history of the area.

“There is a wealth of inground resources still to be fully uncovered.”

Strong investor support

The placement is to be completed in two tranches, with the first 28 million shares to be issued under available regulatory capacity and settled by the end of August.

Remaining placement shares amounting to 47 million are subject to shareholder approval and a meeting is expected before the end of September.

Strongly supported by new and existing investors, the placement has increased the depth of investors participating in the REZ share register.

Four new broking firms also participated in the raise.

Capital for project development

Along with existing cash, placement funds will be used for development of Menzies’ Central, East, North, West and South zones.

This will include follow-up drilling to expand existing resource targets at the gold project and drilling new targets that have been identified.

Capital will also support further resource development at the Mount Mackenzie Gold-Silver Project.

REZ holds mining leases in WA and QLD and aims to develop a portfolio of tenements through to production.

The development company is focused on its flagship Menzies project which is 130 kilometres north of Kalgoorlie.

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