Echo raises funds for gold project

Local gold explorer Echo Resources has received firm commitments for a $3.23 million capital raising to fund ongoing work at its Julius project in the Goldfields.

The funds were raised through the placement of 19 million shares at 17 cents per share, representing a 10 per cent discount to Echo’s 10-day volume weighted average price.

Echo director Simon Coxhell said the board was pleased with the addition of new shareholders, as well as an unnamed ‘high-calibre’ institutional investor onto the register.

“We appreciate the faith shown by all investors in the company, specifically for the Julius project and our other high quality exploration assets,” Mr Coxhell said.

“Following completion of the placement Echo is in a strong financial position enabling an aggressive but targeted approach with regard to resource definition, mine development activities and testing of the company’s regional gold targets.”

Echo shares were 6.8 per cent lower to 20.5 cents each at 10:20am.

BW Equities brokered the raising.