Buxton to raise $2.6m for drilling

Perth explorer Buxton Resources has made plans to raise $2.6 million to fund drilling at its Yalbra graphite project in Western Australia, along Oaktree North and Zanthus Ni-Cu projects in the Fraser Range.

Buxton said it would raise up to $1.6 million in a placement to sophisticated and professional investors through the issue of up to 8 million new shares at 20 cents per shares.

In addition, the company’s eligible shareholders will be given the opportunity to participate in a share purchase plan, which the company hopes will raise up to $1 million.

“The strong signal of support from existing and new shareholders is a strong validation of Buxton’s assets and strategy,” Buxton chairman Seamus Cornelius said.

“We look forward to embarking on high impact nickel-copper exploration in the Fraser Range soon and significantly advancing the very high grade Yalbra Graphite project.

“We are very pleased by the overwhelming interest received for the placement and we are pleased to offer eligible shareholders to participate in the share purchase plan.”

In July, Buxton experienced a spike in its share price when it announced positive drilling results from its Yalbra project.

Buxton shares last traded at 23 cents per share at 12:15pm.