Great Boulder Resources Ltd (ASX:GBR) has received binding commitments to raise $6.3 million in a strongly supported share placement, which together with existing cash reserves will fund resource expansion exploration and drilling at its flagship Side Well Gold Project in WA.
The placement, comprising the issue of ~149.5 million new fully paid ordinary shares at an issue price of 4.2 cents per share, received strong support from existing major shareholders Collins Street Value Fund and Lion Selection Group.
This issue price represents a 22.2% discount to Great Boulder’s last close on October 28, 2024, of 5.4 cents per share and a 19.8% discount to the 5-day VWAP of 5.2 cents per share.
"Clear endorsement"
Great Boulder managing director Andrew Paterson said: “We are extremely pleased with the level of support shown by well credentialled new and existing resource investors for the placement, with the strong demand received representing a clear endorsement of Great Boulder’s high-grade resource growth strategy.“
The company is now funded for resource expansion exploration and drilling at the Side Well Gold Project, metallurgical test-work at Mulga Bill; exploration at the recently acquired Polelle and Wanganui gold projects; along with corporate costs and general working capital requirements.
“The proceeds of this placement, combined with existing cash reserves, will put Great Boulder in an outstanding position to capitalise on what has been a fantastic year for exploration at our flagship Side Well Project,” Paterson said.
Use of funds
“The funds raised will be used to deliver resource growth at Side Well as we close in on the million-ounce resource milestone and start to focus on a medium-term 1.5 million-ounce objective, which is based on our view that Side Well has the potential to underpin a long-term mining operation once we complete the necessary drilling and economic studies.”
Side Well hosts a mineral resource estimate (MRE) of 668,000 ounces at 2.8 g/t gold including a high-grade core of 496,000 ounces at 5.3 g/t.
The resource expansion exploration and drilling campaigns at Side Well will include ongoing extensional drilling designed to expand the Mulga Bill and Ironbark resources; and ongoing exploration and drill programs at Mulga Bill North to underpin a maiden resource.
The company anticipates strong near-term news flow given the planned resource expansion at Mulga Bill, follow-up drill programs at Mulga Bill North to underpin a maiden resource, and planned drilling on high-priority prospects along the more than 18-kilometre Ironbark mineralised corridor.
Side Well is strategically located close to existing mines and infrastructure.