Yandal Resources Ltd (ASX:YRL) has received firm commitments from major shareholders and new investors to raise $4 million for its Yandal and Norseman gold projects in Western Australia.
The share placement will involve 76.9 million fully paid shares at $0.052 each and one free attaching option with an exercise price of $0.11 and expiring on November 17, 2025, for every two shares subscribed.
The cash call was oversubscribed, receiving strong support from existing and new institutional and sophisticated investors.
Keen on lithium too
Yandal intends to use the funds raised on resource expansion drilling at the Ironstone Well, Barwidgee, Mt McClure and Gordons projects as well as for early-stage assessment for lithium across the Yandal Belt tenements.
The share placement will be spread over two tranches, with the first unconditional tranche consisting of 35.4 million new shares to raise $1.8 million.
The second tranche, involving 41.5 million new shares for $2.2 million, is conditional upon shareholder approval, either at the upcoming annual general meeting on November 28 or an extraordinary general meeting expected to be held in mid-December.
The 38.5 million new options, and the 4 million options to be issued to lead manager of the placement MST Financial Services Pty Ltd, are subject to shareholders’ approval and will be issued under the second tranche.
Busy period ahead
“We’re very pleased with the response to this capital raising,” Yandal Resources managing director Tim Kennedy said.
“It’s clear that participants can see the quality and inherent value that our project portfolio represents.
“These funds will enable us to accelerate exploration at our key target areas, starting with a reverse circulation program at the large-scale Oblique project commencing next week.
“It will also enable us to direct funds to early-stage assessment of the potential for other commodities such as lithium, which have not yet been the focus of past exploration activities.
“We’ve got a very active exploration schedule planned over the next 6 to 12 months and are looking forward to reporting progress as results come to hand.”