Chase Mining Corporation Ltd (ASX:CML) increased its exposure in Queensland during the December quarter, making a strategic investment in private exploration company Red Fox Resources, investing $600,000 to become a 40% shareholder.
The company is also well funded leading into 2021, having recently completed a placement to raise around $820,000 to fund exploration at its Alotta and Lorraine Projects in Quebec, Canada.
Notably, Chase gained a new substantial holder in Syracuse Capital Pty Ltd during the quarter, which now holds 5.76% of the company.
Perth-based Syracuse attained this status after acquiring 18,375,010 ordinary shares in the company between October 2, 2020, and January 8, 2021.
Red Fox Resources
The Queensland-based explorer has a copper-gold (± cobalt), high-grade gold and silver-lead-zinc focus, with seven wholly owned granted tenements (EPMs) covering 900 square kilometres in two highly mineralised districts: Mt Isa/Cloncurry and Georgetown.
Red Fox has a pipeline of targets for discovery of an Ernest Henry style IOCG copper-gold (Tick Hill style high grade gold) and large Century and Broken Hill style zinc-lead-silver deposits.
Under the terms of the investment, Chase has the right to appoint a director to Red Fox’s board and a pre-emptive right over any further shares issued by Red Fox.
Accordingly, executive chairman Leon Pretorius has been appointed as a non-executive director of Red Fox.
During the quarter Chase commenced a desktop review of historical drilling and other exploration data within the greater Alotta, Delphi and Zullo (ADZ) claim area at the Alotta Project.
This will continue in the first quarter 2021 and include Canadian consultants to potentially outline new drill targets.
In October, the company reported that all gold assays from the six targeted deep diamond holes drilled at its Lorraine Project were received but failed to validate the historically reported high-grade gold mineralisation from the mine’s 6th level (around 300 metres vertical depth) development drives.
Chase has also commenced a desktop review of historical drilling and other exploration data within the greater Lorraine claim area which will continue in the first quarter 2021.
Placement to fund exploration
Subsequent to the quarter end, the company received firm commitments to raise around A$821,000 through a placement to sophisticated investors and directors at A$0.016 per share.
Proceeds of the placement will be used to carry out additional preparatory desktop and fieldwork at its Canadian projects prior to possible further drilling on targets generated and for working capital.
Placement shares, excluding shares with a total value of $56,000 to be issued to directors, will be issued without shareholder approval, with the directors’ commitment subject to shareholder approval, which will be sought shortly.