American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has become a substantial shareholder of Godolphin Resources Ltd following the completion of Godolphin’s placement and entitlement offer which raised approximately A$2.137 million.
The completion of the entitlement offer alone raised A$1.422 million after the entire shortfall was placed to new and existing shareholders.
Among them was ARR, which now has a substantial 13.21% holding. ARR subscribed for A$638,000 (for a total of 15.2 million new ordinary shares and 7.6 million options) in the ASX-listed explorer which has projects in the Lachlan Fold Belt of New South Wales, a world-class gold-copper province.
“We are very pleased with the strong support received during our recent fundraising and would like to thank all our shareholders for their continued support and engagement," Godolphin managing director Jeneta Owens said.
"We also are delighted to welcome new shareholders and in particular American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF). Importantly, ARR share our view regarding the significant potential for Godolphin’s Narraburra Rare Earth Project and support our development-driven strategy.
“The additional funds raised through the placement of the shortfall, together with the funds already raised from the entitlement offer and placement, gives us the capacity to complete our scheduled phase 2 metallurgical program and diamond drilling at our Narraburra REE Project, along with testing of two highly prospective prospects on the Yeoval Copper-Gold Project in the second half of 2023.”
Use of funds
New funds will be used towards:
- the company’s systematic exploration strategy to advance the Narraburra Rare Earths Project via additional metallurgical testing and diamond drilling, aimed at increasing the resource size and grade; and
- RC drilling at Godolphin’s prospective Yeoval Copper-Gold project in H2 2023.
In total, the entitlement offer raised approximately A$1.422 million (for a total of 33.8 million new ordinary shares and 16.9 million options) and includes the recent placement of the shortfall of approximately A$829,000 (for a total of 19.7 million new ordinary shares and 9.9 million options).
The shortfall shares and options were placed to new sophisticated and professional shareholders, including ARR, on the same terms as those issued under the entitlement offer and recent placement.
Upon completion of the entitlement offer, and following Godolphin’s recent oversubscribed placement and rights offer, the company has secured approximately A$2,137,000.
The money gives Godolphin strong financial flexibility to fast-track exploration across its 100% controlled Australian-based projects.
Godolphin has a strategic focus on critical minerals and green metals through ongoing exploration and development in central west NSW.
Currently, its tenements cover more than 3,400 square kilometres of highly prospective ground focused on the Lachlan Fold Belt, a highly regarded providence for the discovery of rare earth elements (REEs), copper, gold and base metal deposits.
Additional prospectivity attributes of GRL tenure include the McPhillamys gold-hosting Godolphin Fault and the Boda gold-copper hosting Molong Volcanic Belt.
Godolphin is exploring for clay-hosted REEs in both NSW and Queensland, structurally hosted and epithermal gold, base-metal deposits and large, gold-copper Cadia-style porphyry deposits in the Lachlan Fold Belt.