Forrestania Resources Ltd (ASX:FRS) has raised $250,000 at a price of $0.0125 per share from the placement of the shortfall associated with its share purchase plan (SPP), which closed on November 8, 2024.
The company issued 20 million shares and will issue an additional 13,764,940 listed FRSOB options to Sandton Capital Advisors.
These options are exercisable at $0.075 per option on or before November 20, 2025. The options are part of Sandton Capital Advisors' compensation for managing the placement announced on October 14, 2024, which was linked to the SPP.
“We would like to thank existing and new shareholders for their support of the company’s capital raising, as we progress our gold exploration plans at Bonnie Vale and elsewhere,” Forrestania Resources’ chairman John Hannaford said.
Advancing exploration
Forrestania plans to advance exploration at the Bonnie Vale Project near Coolgardie, in WA’s prolific Eastern Goldfields following encouraging recent drilling results.
Forrestania uncovered a bonanza-grade rock chip sample, with an exceptional grade of 222 grams per tonne (g/t) gold.
The company also analysed four historical spoil piles from previously unrecorded drill holes at the project, which returned gold values of up to 13.9 g/t.
Additionally, several regional targets were identified through historical drilling and elevated gold in geochemical soil testing. These include zones around the Christmas Gift and Bonnie Vale North prospects, earmarked for further exploration.
Further recent highlights include intercepts of 7 metres at 5 grams per tonne (g/t) gold, 6 metres at 6.5 g/t gold, and 16 metres at 2.6 g/t gold, from shallow depths of 4 to 24 metres.
Additionally, historical geochemical drilling at the project has returned soil sample grades of up to 49 g/t gold, further enhancing its exploration potential.
Just last week, the company secured a key tenement under option at Bonnie Vale.
The acquisition coincides with the company awaiting crucial gold assay results from its recent reverse circulation (RC) drilling program at the Ada Ann prospect.
The newly acquired tenement lies east of the Bonnie Vale Project and encompasses the southern extension of the geologically significant Kunanalling Shear Zone (KSZ).