Breaker raises $11m

Breaker Resources has tapped investors for $10.5 million to progress a study at its Lake Roe gold project east of Kalgoorlie.

Under the share placement, the company issued shares at 29 cents each, representing a 9.4 per cent discount on its last closing price.

The company said proceeds from the raising would be used to advance a pre-feasibility study at Lake Roe.

“With the addition of the placement funds to the company’s existing cash reserves, Breaker is now well funded to continue its aggressive drilling and exploration campaign at the 1.1 million ounce Bombora gold deposit at the Lake Roe gold project, 100km east of Kalgoorlie,” Breaker said in a statement to the ASX.

“The gold discovery remains open in all directions and the primary aim of the company is to continue growing the resource and define a maiden reserve in the medium term.”

Bell Potter Securities acted as lead manager and bookrunner to the placement.

Shares in Breaker finished up 3.3 per cent at 33 cents each today.