Chesser Resources Ltd (ASX:CHZ) has received firm commitments for a placement of 42 million shares at an issue price of 4 cents per share to raise $1.68 million before costs.
The funds raised will be used to undertake a program of up to 2,500 metres of reverse circulation and 1,000 metres of diamond drilling at its flagship Diamba Sud Gold Project in Senegal, West Africa.
Managing director Mike Brown said he was delighted with the strong support the placement had received from investors in the current environment.
"Well-positioned" to undertake drilling
“The success of the capital raising reflects the excellent progress that Chesser has made in confirming a high-grade gold discovery at Diamba Sud.
“With cash reserves of approximately $2 million following the completion of the placement, Chesser is well-positioned to undertake a drilling campaign designed to focus on the likely feeder structure identified in the Area A discovery and other high potential zones.
“We look forward to updating the market on commencement of this program and entering into a potentially transformative cycle for Chesser.”
The raising was completed with strong demand from existing shareholders and several new sophisticated domestic and international investors.
New placement shares
New shares will rank equally with existing fully paid ordinary shares.
The placement was managed by Taylor Collison and Bridge Street Capital Partners as co-manager.
Subscribers for the placement shares will, subject to shareholder approval, also receive 1 free attaching option for every two placement shares subscribed for.
These placement options will have an exercise price 8 cents and an expiry date of 12 months from the date they are issued.