Yandal Resources Ltd (ASX:YRL) will raise approximately $4.93 million in new funds, before costs, after formalising an options underwriting agreement with Blackpeak Capital Pty Ltd.
Before the underwriting agreement was executed, Yandal had received valid exercise forms and funds amounting to $560,000 for some of the $0.24 options and when combined with the underwritten amount, will bring total funds collected to $5.5 million, excluding the underwriting agreement costs.
The money will position the company to advance exploration at its Siona, Irulan and Caladan prospects of the Ironstone Well-Barwidgee Gold Project (IWB).
“We are very pleased with this show of support by our option holders and the broader market which provides us with the requisite capital to enable us to aggressively pursue further exploration in our Siona discovery and follow up on both Caladan and Irulan together with our ongoing programs across our other prospects,” managing director Chris Oorschot said.
Strong options
Blackpeak will underwrite 20,541,088 unexercised options, exercisable at $0.24 on or before October 31, 2024.
If the underwritten options are not exercised before their expiry date, the underwriter will subscribe for shares (or arrange their subscription) and pay the exercise price for the underwritten options.
Blackpeak has entered a sub-underwriting agreement with new and existing institutional, sophisticated and professional investors to support the sub-underwriting of the underwritten options exercise.
Shares issued to the underwriter will not need shareholder approval.
Riding a wave
Yandal’s shares soared recently after the company announced an emerging gold discovery at the New England Granite Prospect of the IWB Gold Project in Western Australia, dubbing it 'Siona'.
The company’s reverse circulation (RC) drilling program, completed earlier this month, intersected a wide zone of gold mineralisation in fresh rock at Siona, returning 78 metres at 1.2 grams per tonne (g/t) gold from 96 metres depth to the end of the hole.
This interval included two higher-grade zones - 5 metres at 3.2 g/t gold from 102 metres and 5 metres at 2.8 g/t from 139 metres.