Great Western Exploration Ltd (ASX:GTE) has received commitments from professional and sophisticated investors to raise around $2.5 million in a placement cornerstoned by regarded mining executives Simon Lee AO and Morgan Hart.
The shares were issued at a price of 18 cents per new share, representing a discount of 5.3% to the last traded price and 5-day VWAP of 19 cents.
Use of funds
Funds raised will be applied to advance exploration activities at the company’s Golden Corridor Project, including the Finlayson camp-scale gold target and five newly identified high-priority bedrock gold targets.
These gold targets are large, structurally complex zones where modelling has indicated shallow cover.
Exploration program design and planning has commenced in advance of forthcoming drilling.
The cornerstone investors in the placement of 14 million shares are Simon Lee AO, who was the inaugural chairman of Equigold NL, and Morgan Hart, previously executive director and chief operating officer at both Equigold and Regis Resources Limited (ASX:RRL).
Great Western is pleased to welcome these cornerstone investors who have proven capabilities in progressing gold mining projects from discovery, through development and into production.
Hartleys Limited acted as sole lead manager in respect of the placement.
Great Western’s 100%-owned Golden Corridor Project comprises a practically untested 60-kilometre strike of the Agnew-Wiluna greenstone belt, within the Kalgoorlie Terrane in Australia’s most prolific gold belt and along strike to the north of the Wiluna Mining Centre.