Strickland Metals Ltd (ASX:STK) has secured $1.225 million in funding in this latest share purchase plan (SPP), taking the company a step closer to its capital raising goal of $7 million.
The company recently raised $4 million in a share placement to institutional and sophisticated investors, bringing the total raised to $5.225 million.
Strickland will seek shareholder approval at an extraordinary general meeting on October 4 for a shortfall placement of 35.5 million shares offered at the same price as the SPP at $0.05 per share to raise the remaining $1.775 million.
Regional exploration at Millrose
Strickland intends to use the funds generated in this capital raise to conduct aggressive extensional and infill programs at the flagship Millrose Gold Project, and regional exploration – specifically on the Iroquois zinc-lead discovery.
The company’s priorities for the funds are to progress future exploration drilling as follows:
- along strike extensions to the north and south as identified in the geophysical and geochemical datasets;
- for depth extensions, with a focus on the high-grade domains to understand underground mining potential;
- to further define of extensive, near-surface oxide and laterite mineralisation;
- to target parallel trends to the west of the main defined shear zone; and
- to follow-up reverse circulation (RC) drilling program at Iroquois.
The funds will also be used for:
- costs associated with the placement and SPP; and
- a portion of the company’s working capital needs.