Chesser Resources Ltd (ASX:CHZ) has received firm acceptances for the placement of about 31.5 million shares at an issue price of 6 cents per share to raise around $1.89 million before costs.
Net proceeds from the placement will be used for new exploration programs at the Diamba Sud project in Senegal, which is expected to begin with diamond drilling by the end of October 2019.
Drilling is also planned to test high-grade continuity and the geological model at Line A and Line D.
A 5,000-metre reverse circulation (RC) drilling campaign is planned to follow the diamond drilling program early in 2020.
Managing director and CEO Mike Brown said: “This is an excellent result for Chesser.
“We are delighted with the strong support the company has received from investors and we’re looking forward to following up the Diamba Sud discovery, as well as other exceptional results received from the recent RC drilling program.”
Chesser shares have been up more than 13% to an intra-day high of 6.9 cents, well up on the 3.1 cents of less than a month ago.
The new shares will rank equally with existing fully paid ordinary shares, increasing the total number of shares on issue to about 280.3 million.
This placement was managed by Taylor Collison.
In addition to the placement shares, the company has entered into agreements to issue 416,666 shares at the placement price of 6 cents per share with directors of the company subject to shareholder approval.
The company anticipates that it will seek shareholder approval to issue the $25,000 in shares subscribed for by the directors at its annual general meeting, which is planned to be held prior to November 15.