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Astro Resources raises $1.996 million in first tranche 1 of capital raising to fund work programs across project portfolio

The company completed its capital raising on February 24, with proceeds to help fund further development of three projects - Needles Gold Project in the US and the Governor Broome Minerals Sands Project and Lower Smoke Creek Diamond Project, in WA.

Astro Resources NL - Astro Resources closes Tranche 1 of its $2.994 million capital raising to fund work programs across its project portfolio
Tranche 2 will comprise 249.6 million shares, issued subject to shareholder approval, and is expected to occur sometime in April 2021.

Astro Resources NL (ASX:ARO) has closed Tranche 1 of its capital raising plan, notching up $1.996 million before costs by issuing 498.9 million shares at $0.004 per share.

In addition, each shareholder who subscribed under Tranche 1 is entitled to one free attaching option at an option price of 1 cent with an expiry date of April 21, 2021, and this is subject to shareholder approval.

A notice of meeting for the Tranche 1 options as well as the proposed issue of a further 249.6 million Tranche 2 shares at a price of $0.004 per share plus one free attaching option on the same terms as those of the Tranche 1 options is being finalised.

Funding work programs

The company completed its $2.994 million capital raising on February 24, with the proceeds to help fund further development of its portfolio of three projects - Needles Gold Project in the US, Governor Broome Minerals Sands Project in WA and Lower Smoke Creek Diamond Project, also in WA.

Funds will allow the company to commence its Needles drilling programs, progress to a pre-feasibility study for the Governor Broome project as well as undertaking work at its diamond project.

Needles RC drilling

The primary focus in the near-term is the Needles project in gold-rich Nevada where an induced polarisation geophysical program has confirmed the presence of a chargeability anomaly as defined in the company’s broader spaced 2018 IP survey.

Raw data from the IP program is now with an Australian geophysical consultant, who will generate a 3D model that will be used for drill targeting.

Additionally, Astro has contracted a drill company for its anticipated reverse circulation (RC) program, which is scheduled to begin in the third quarter of 2021.

Astro plans to carry out the following activities throughout 2021 at Needles:

  • Interpretation and reporting of latest IP and seismic geophysical work;
  • Integration of 2020 geological mapping with geophysical results and historical drilling information;
  • Planning and drilling of initial 2021 drill program consisting of up to 10 RC holes, each up to 300 metres deep;
  • Interpretation of the results of the initial drilling and planning of subsequent work;
  • Dependent on the results from the first drill program and subject to drill availability, completion of a second drill campaign, which will subject to a separate capital raising; and
  • Geological mapping and sampling of the new claim area.

Governor Broome and Lower Smoke Creek

At the Governor Broome Minerals Sands Project in Western Australia, a bulk test-work program, which is being carried out by Allied Mineral Laboratories (AML), is expected to be completed by mid-March with a report provided to Astro by mid-April.

At Lower Smoke Creek Diamond Project the company has developed a drilling program comprising 140 holes for 700 metres to establish the extent and thickness of diamondiferous palaeoterraces near the confluence of Billy Goat and Smoke Creeks.

A pitting program has been planned to supplement and extend the diamond size and weight data that has been reported from the historical prospecting within the project area, enabling locations and depths of the pits to be established.

Results from the program are expected to be used to develop a mineralisation report.

A Program of Work application (POW) to carry out drilling is in place with the Western Australian DMPIRS, approval will be contingent on Traditional Owner arrangements with a second POW to be submitted later this month for a pitting program.

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on 18/8/21

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