Artemis Resources Ltd (ASX:ARV) has received firm commitments to raise $5.6 million after strong participation in its placement from new institutional investors from Australia and the UK, as well as existing shareholders.
The board had sought as a minimum to raise $4.2 million for 60 million shares but retained discretion to issue an additional 20 million shares should it decide to for another $1.4 million.
Given the quality of investors and large number of bids received, the board chose to take the maximum of $5.6 million.
Artemis non-executive chairman Mark Potter said: “We are pleased and greatly encouraged by the level of support Artemis has received with respect to the capital raise we announce today.
"The capital raising received a substantial number of bids representing significantly more than the company was seeking.
“We welcome several outstanding new institutional investors to the register, and thank existing shareholders for their continuing strong support in this capital raise.”
Artemis will issue 80 million shares at 7 cents per share, representing a 12.5% discount to the last trading price of 8 cents.
Patersons Central drilling
Funding will be applied to diamond drilling at the Patersons Central Gold Project adjacent to the Newcrest (NCM:ASX)/Greatland Gold (GGP:AIM) Havieron discovery in Western Australia.
Potter said: “These new funds allow us to pursue expanded exploration activities across the portfolio.
“At Paterson Central we have an exceptional exploration opportunity in one of the world’s most exciting new gold-copper frontiers, adjacent to and surrounding on three sides, the Havieron gold and copper discovery being drilled by Newcrest and Greatland Gold.
“As per our previous guidance we will soon be releasing details of our recent geological and geophysical interpretation of Paterson Central, and our final drill design plan.”
Drilling at Paterson Central is expected to commence in August.
Carlow Castle exploration
Funds will also be used for a follow-up exploration drilling campaign at Carlow Castle to increase the gold and copper resources (current inferred JORC 2012 resource 418,000 ounces gold, 48,000 tonnes copper, 7,000 tonnes cobalt) as well as additional regional exploration and general working capital.
Potter said: “At the Greater Carlow Project we continue to progress our exploration plans and will provide further details of our next drilling campaign in the near future.”