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Rimfire Pacific completes $2.6 million capital raising to advance exploration for large-scale gold and copper targets

The company has raised $500,000 in a share purchase plan that follows a recent $2.1 million placement.

Rimfire Pacific Mining NL - Rimfire Pacific completes $2.6 million capital raising to advance exploration for large-scale gold and copper targets
Funds will be used for exploration activities outside the GPR earn-in area in the Lachlan Fold Belt

Rimfire Pacific Mining NL (ASX:RIM) has completed a $2.6 million capital raising drive after closing a share purchase plan for proceeds of $500,000 with funds to aggressively pursue gold-copper targets in the prolific Lachlan Fold Belt of central NSW.

The SPP provided eligible shareholders with the opportunity to subscribe for up to $30,000 of new fully paid ordinary shares in the company, at an issue price of 1.25 cents per new share, subject to any scale back.

Rimfire received applications totalling $162,500 from eligible shareholders and the SPP was fully underwritten by Trans Global Capital Ltd, who will subscribe for the remaining $337,500.

Proceeds to assist copper-gold strategy

Managing director Craig Riley said: “We are thankful for the support of both our shareholders and the underwriter.

“The proceeds from the SPP will ensure Rimfire is able to continue execution of our strategy to discover a large-scale copper-gold or gold ore body within our exploration licences in the Lachlan Transfer Zone of the exciting and very prospective Lachlan Fold Belt in central NSW.”

The SPP follows a recent placement that was strongly supported by professional and sophisticated investors and raised $2.1 million.

Strengthened balance sheet

Proceeds from the capital raising strengthen the company’s balance sheet and provide funding for ongoing exploration for a significant size (>1-million-ounce gold and/or 1-million-tonne copper) porphyry or skarn style discovery outside the Golden Plains Resources Pty Ltd (GPR) earn-in area including:

  • The Valley target - RC/diamond tail drilling of five existing IP geophysical features in an area of shallow cover where surface rock chip samples have elevated copper and gold geochemistry. This prospect is 5 kilometres to the west of Mordialloc prospect where Kincora Copper/Rare-X are obtaining interesting porphyry copper results;
  • Greater Cowal Area - Aircore drill testing of the bedrock beneath transported cover;
  • General exploration activities, government compliance and project evaluation, and
  • Ongoing working capital for the company.

SPP details

Around 40 million new shares will be issued under the SPP on October 28 and those shares are expected to begin trading on the ASX on Friday, October 30.

New shares issued under the SPP will rank equally with existing RIM ordinary shares from their date of issue.

Holding statements are expected to be dispatched on or around Monday, November 2.

Quick facts: Rimfire Pacific Mining NL

Price: 0.01 AUD

ASX:RIM
Market: ASX
Market Cap: $18.06 m
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