Breaker raising up to $23m

Gold explorer Breaker Resources is raising funds to advance drilling activities and resource growth at its Lake Roe project in Western Australia.

Breaker is targeting three areas of growth, identified this year – Bombora Deeps, Kopai Crescent and the Carbineer area – with the West Perth-based company planning to expand the 1 million ounce open pit resource at Bombora.

Executive chairman Thomas Sanders said the Lake Roe project was a “rare large Greenfields gold camp in the early stages of delineation”.

He said the 600 square kilometre Eastern Goldfields project had 40 kilometres of strike potential.

Breaker has launched a $20 million share placement, and is seeking a further $3 million by way of a share purchase plan, to advance further drilling at Lake Roe.

Mr Sanders said the company had received strong support for the raising, with US-based Paulson & Co and Electrum contributing $15 million.

“The extent of support from several prominent US funds of this calibre is a major vote of confidence in the potential of the Lake Roe gold project, our people and our strategic approach to expansion built on early de-risking,” Mr Sanders said.

Breaker will issue around 73.8 million shares in two tranches, with the placement being managed by Canaccord Genuity.

Shareholders will also be able to apply for up to $30,000 under the SPP.

Shares in Breaker closed up 7.8 per cent today to trade at 28 cents.

Fellow gold explorer Aruma Resources has also raised funds for two of its WA gold projects, after announcing a $2.7 million share placement earlier today.

Aruma is seeking to develop its Saltwater and Melrose projects in the Pilbara.

The West Perth-based company will issue 675 million shares priced at 0.4 cents each, with Lazarus Corporate Finance and Sydney-based Rawson Lewis acting as joint lead managers to the placement.