Gold-copper explorer Far East Gold Ltd (ASX:FEG, OTC:FEGDF) has launched a share purchase plan (SPP) seeking to raise up to A$2 million at A$0.136 per share.
The SPP, which follows an A$2.3 million placement, opens today and provides an opportunity for shareholders to participate at the same issue price as under the placement. Eligible shareholders have the opportunity to apply for up to A$30,000 of new fully paid ordinary shares.
Funds will be used to progress the company’s exploration programs in Indonesia along with general working capital purposes.
The 13.6 cents per share issue price is equivalent to a 24.44% discount to the last closing price on July 26, 2024, and a 20% discount to the volume weighted average price (VWAP) over the five trading days before the date the SPP was announced.
When announcing the SPP, Far East Gold CEO Shane Menere said the company was “on the cusp of some very exciting things and we are looking forward to further progressing our three potential tier-1 assets”.
Far East’s three tier-1 assets
The company is primarily focused on its Indonesian projects.
Woyla Project, where it is working towards a maiden resource, incorporating recent and highly prospective drilling results that include one of the project’s best cumulative gold metre intercepts to date of 20 metres at 7.57 g/t gold and 8.5 g/t silver (7.67 g/t gold-equivalent).
Trenggalek Project, where phase 1 drilling at the highly prospective Sumber Bening prospect is planned. The drill program is developed jointly by the company and the geotechnical team of FEG’s strategic partner, Eurasian Resources Group.
Idenburg Project, where historical data will be used to estimate a JORC 2012 resource estimate. Exploration and permitting obstacles have been removed for Idenburg and it now enjoys Production Forest status, paving the way for detailed exploration and project development.