Stavely locks in share agreement with Titeline

Stavely Minerals has secured a $2 million share subscription agreement with its contracted drilling services company, Titeline Drilling, under which Stavely can partly pay its monthly drilling bill in lieu of Titeline’s share subscription payment.

Under the agreement, Stavely has the option to settle monthly drilling charges by way of a 50 per cent cash payment and 50 per cent as offset of the share subscription application price.

If Stavely does choose to partly offset Titeline’s subscription application, the subscription price will be based on the lower of the five-day and 10-day volume weighted average price at the date of each application.

The company anticipates that the subscriptions will take place of the next 12 months.

Stavely managing director Chris Cairns said the agreement would enable the company to double the amount of drilling metres available per dollar expended to test exploration projects in western Victoria.

“This represents a strong vote of confidence by our drilling contractor in the potential of our assets with Titeline Drilling effectively agreeing to share the risk – as well as the upside – in advancing our copper and gold projects,” Mr Cairns said.

Stavely Minerals shares closed the day steady at 42.5 cents.