Strickland Metals Ltd (ASX:STK) is building the war chest by way of a placement to institutional and sophisticated investors of 125,000,000 fully paid ordinary shares in the company at an issue price of $0.032 per share, targeting roughly $4 million before costs.
Flagship Yandal Project to benefit
CEO Andrew Bray said: "We are delighted to have successfully raised $4 million largely from our existing shareholder base. The company is extremely grateful for the ongoing support of its shareholders, particularly some of the major shareholders who cornerstoned the placement.
“The funds raised will allow Strickland to continue its highly effective and successful exploration programs at its flagship Yandal gold project, the results of which are feeding into an updated mineral resource. This is due to be released to the market in the current half-year period.
“Additionally, several diamond holes will also be drilled at Iroquois in the coming weeks testing the main feeder structure as well as an interpreted easterly extension of the mineralisation. This drilling will occur prior to the planned demerger and IPO of Iroquois and is designed to provide stronger understanding of the controls on the mineralisation.
“The information provided by this drilling will be critical in informing the design of the large scale programs to commence immediately after the IPO.”
The issue of the new shares under the placement is expected to occur on February 13. The company’s directors have also committed their support for the placement with a collective total of $225,000 under the placement, or 7,031,250 new shares, subject to shareholder approval.
The offer price of $0.032 represents an 18.4% discount to the 15-day volume-weighted average price (VWAP) of $0.0392 and a 13.5% discount to the last closing price of $0.037.
Priority for future exploration
The proceeds of the placement will underpin the next phase of drilling and resource growth at the company’s flagship Yandal Project and regional projects.
The priority for future exploration is as follows:
- commencement of 2023 exploration campaigns;
- initial diamond drilling at Iroquois (pre-IPO);
- follow up drilling at newly discovered Millrose West shear zone; and
- undertaking of initial regional drilling.