Silver Lake Resources says it has received strong support for a $70 million share placement to fund the development of its Murchison gold project and ramp up its copper exploration activities at the mine’s Eelya Complex.
Silver Lake announced yesterday institutional and sophisticated investors from Australia, North America and Europe had responded strongly to the $3.40 per share offer, a 5.7 per cent premium to the company’s 20-day volume weighted average price.
Managing director Les Davis said securing the funding was a significant step in the company realising its strategy of operating multiple mines at Mt Monger and Murchison.
“Furthermore, the Eelya complex has already delivered a high-grade copper discovery with drilling ongoing over the remaining 8 electromagnetic conductors within a 50 square kilometre area,” Mr Davis said.
The placement is not underwritten, while Casimir Capital is acting as sole book runner.
Hartleys is acting as joint lead manager for the placement.
Settlement is expected on November 23, Silver Lake said.
At 9:48AM (WST) Silver Lake shares were trading at $3.60.