Auteco launches $30m raising

Auteco Minerals is set to ramp-up exploration activities at its flagship Pickle Crow gold project in Canada using funds raised from a $30.4 million share placement.

The West Perth-based company began a maiden drill program at Pickle Crow in June, comprising 5,000 metres of diamond drilling, with nine holes already drilled and a second drilling rig scheduled to arrive at site.

The Ontario project has an inferred resource of 830,000 ounces at 11.6 grams per tonne of gold, as announced by Auteco in June.

Chairman Ray Shorrocks said the company was focussed on numerous high-grade targets identified earlier this year.

“Our current drilling program will be the first systematic exploration program at Pickle Crow in 50 years, and we are very excited by its immense potential," Mr Shorrocks said.

The Pickle gold mine, of which Auteco purchased an 80 per cent stake in January, has historically produced 1.5 million ounces at an average grade of 16 g/t of gold.

Canada-based First Mining acquired Pickle Crow in 2015 and holds the remaining 20 per cent interest.

Auteco will issue approximately 225 million new shares, priced at 13.5 cents each, with Canaccord Genuity acting as lead manager to the placement.

The offer represents a 10 per cent discount to Auteco’s last closing price of 15 cents.

The company, which requested a trading halt this morning, expects to begin normal trading on Wednesday.