Industry sources suggest the company is raising up to $19 million through a share placement priced at $1.00 but this is yet to be confirmed by the company.
Stavely’s share price has run from around 20 cents in September to a recent high of $1.40 following exceptional drill results at the Thursday’s Gossan Prospect within the Stavely Project in Victoria.
Recap of the discovery holes
On 23 September 2019, Stavely entered a trading halt with its shares having last traded at 23 cents.
The results were released showing diamond hole SMD050 had intersected 32 metres at 5.88% copper, 1.00 g/t gold and 58 g/t silver from 62 metres depth.
This broad, high-grade intersection propelled the share price to a high of $1.25 over the ensuing two days of trading.
On 7 October 2019, Stavely entered another trading halt to release a step-out hole (SMD051) that had been drilled 160 metres to the south-east of the discovery hole.
The hole intersected 59 metres at 1.80% copper, 0.43 g/t gold and 15.4 g/t silver from 98 metres and 8 metres at 9.69% copper, 0.40 g/t gold and 16.8 g/t silver from 177 metres.
This pushed the share price to new recent highs of $1.40 before it pulled back to $1.08, its last traded price.
Funds likely to be used to drill-out the copper-gold discovery
While the details on the capital raising are yet to be released by the company, it is likely that a fresh round of equity capital will be put to work drilling out the discovery at Thursday’s Gossan.
With only assays received for two holes, the high-grade copper-gold resource remains open in all directions.
It is also worth mentioning that assays remain pending for step-out holes SMD052 and SMD053, each collared a further 80 metres south-east respectively from SMD051.