The company has received binding commitments for the placement of 31 million shares at an issue price of 5 cents per share.
Proceeds will be used for exploration on the company’s high-priority gold and copper prospects in the Bryah Basin in Western Australia.
Managing director Neil Marston said: “The successful completion of this placement sees the company well-funded with over $2.3 million in cash available to apply to the company’s exploration efforts on some excellent gold and copper targets.
“In addition, as announced earlier this week, we have access to a further $500,000 of funding from OM (Manganese) Limited under Stage 2 of our joint venture to advance our manganese exploration activities.
“We look forward to managing a busy program of gold, copper and manganese exploration in the Bryah Basin over the coming months.”
Hartleys Limited acted as lead manager to the placement.
Large RC and AC drilling to begin
Bryah is now funded to undertake a large program of reverse circulation (RC) and aircore (AC) drilling across multiple gold and gold-copper targets within its highly prospective Bryah Basin Project.
This will comprise:
- Up to 5,500 metres of RC drilling at the Windalah, Wongawar, Jupiter, Mars prospects and the EM conductor target north of Peak Hill4; and
- Up to 2,500 metres of AC drilling at the Windalah East prospect.
RC drilling is scheduled to commence in the coming weeks at the high priority Windalah gold prospect, where recent drilling and 2018 drilling returned ‘exceptional’ intersections.
The placement was made to several unrelated, sophisticated and professional investors and will be completed in two tranches.
In Tranche 1, the company will issue 20,530,960 new shares to raise $1.026 million (before costs) and these shares are expected to be issued on Friday, June 19.
The balance of the placement, comprising a further 10,469,040 shares to raise an additional $523,452 (before costs), will be issued subject to shareholder approval at a general meeting of the company’s shareholders to be convened in July 2020.