Great Boulder Resources Ltd (ASX:GBR) has received binding commitments to raise $4.5 million before costs in a placement offering shares at $0.05 per share.
The company will also issue one free attaching option for each share subscribed for under the same terms.
The placement received strong support from existing major shareholders Zebina Minerals and Lion Selection Group, and was cornerstoned by institutional investor Collins St Asset Management, which subscribed for 41 million new shares in return for $2.05 million.
Prove up multi-million-ounce potential
“We are extremely pleased with the strong support from key shareholders and to welcome Collins St Asset Management as a material shareholder in the company,” Great Boulder Resources managing director Andrew Paterson said.
“This successful capital raise in difficult market conditions is a strong validation of the Side Well Project, the Great Boulder team and the current strategy in place to maximise shareholder value.
“Following our first drilling program in August 2020, Side Well now has a high-grade resource of 668,000 ounces, providing a strong growth platform to prove up the project’s multi-million-ounce potential.
“This placement positions the company with a strong balance sheet to accelerate exploration on high priority regional discovery targets along the Ironbark Corridor as well as advanced targets such as Mulga Bill North.”
Alongside the placement proceeds, GBR’s cash reserves place the company in a strong financial position to pursue resource growth exploration with about $7 million in the war chest.
Exploration and expansion drilling to come
“Investors can look forward to increased exploration activity coupled with strong news flow in the coming months as we continue to work hard to deliver results, add further high-grade ounces and create value for our shareholders,” Paterson concluded.
The company expects a maiden drilling program at high-priority discovery targets along the more than 14-kilometre-long Ironbark Corridor in early December to provide plenty of news flow, with further planning underway for a resource extension drilling campaign at Mulga Bill.
Side Well’s current resource estimate sits at 668,000 ounces at 2.8 g/t gold, including a high-grade core of 496,000 ounces at 5.3 g/t gold.