15/07/2020 - 17:00

Explorers seek $17m

15/07/2020 - 17:00

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Black Cat Syndicate has launched a $10 million share placement, with three other Western Australian-based explorers also seeking funds to progress their gold and copper projects.

Explorers seek $17m
Black Cat will complete mining studies and ongoing mill studies for its Western Australian projects. Photo: Black Cat Syndicate

Black Cat Syndicate has launched a $10 million share placement, with three other Western Australian-based explorers also seeking funds to progress their gold and copper projects.

Subiaco-based Black Cat said it would use the proceeds raised to complete mining studies and ongoing mill studies for its gold projects in WA.

The company owns 491 square kilometres of tenements in Kalgoorlie comprising the Bulong, Fingals and Rowe’s Find assets.

Black Cat is seeking to upgrade its gold resource base to 1 million ounces, managing director Gareth Solly says.

“This funding will be applied towards reaching this target. We are also looking to establish sufficient resources/reserves to underpin our first three years of production," he said.

Black Cat will assess a number of toll treating alternatives in relation to the Myhree Stage 1 open pit, as part of the company’s Bulong project, which Mr Solly says may be used as a potential funding source for future mine development and mill construction.

“In any event, we are looking to commit to mill construction in the June 2021 half,” he said.

Black Cat will issue around 12.2 million shares priced at 82 cents each, representing a 7.3 per cent discount to the company’s closing price on July 10.

Major shareholder Silver Lake Resources will subscribe for around 1 million shares under the placement, which is being managed by Shaw and Partners.

Black Cat shares closed down 1.1 per cent to trade at 88 cents.

Fellow WA explorer Aldoro Resources is raising close to $1.2 million from a share placement, with the funds to go towards ongoing exploration programs including at the Penny South and Unaly Hill South projects.

Aldoro says it’s also planning a follow up reverse circulation (RC) drill program for Penny South, once planning and targeting work is complete.

The company will issue about 13.2 million shares at 9 cents each, with Xcel Capital acting as lead manager to the placement.

Aldoro shares closed up 4.2 per cent to trade at 10 cents.

Caravel Minerals will also accelerate exploration programs across its WA portfolio after receiving commitments to raise $1.15 million.

Subiaco-based Caravel is looking to progress its namesake copper project, located in the South West Yilgarn region, with planning drilling to begin next month.

Managing director Alasdair Cooke said the mineral potential of the South West Yilgarn region had been highlighted by Chalice Gold Mine's recent discovery at the Julimar prospect – approximately 60 kilometres southwest of Caravel’s copper project.

Mr Cooke said Caravel was now fully-funded to begin exploration activity.

The company will issue 28.75 million shares at 4 cents each, with Mr Cooke to subscribe for $100,000 under the placement.

It is being jointly-managed by Chieftain Securities and Sydney-based Bridge Street Capital Partners.

Caravel is also seeking to raise up to a further $500,000 under a share purchase plan, at the placement issue price.

Meanwhile, West Perth-based Ardiden is seeking funds for an exploration program at the company’s Pickle Lake gold project in Canada.

Ardiden will issue around 291.6 million shares at 1.2 cents each to raise $3.5 million, with the proceeds to advance RC diamond drilling at Pickle Lake, as well as deliver a mineral resource estimate update for the project’s Kasagiminnis gold deposit.

The placement is being managed by Bell Potter Securities.

Ardiden said it would seek a further $1 million by accepting transfers of up to 88 million shares through the use of previously issued collateral shares.

The company closed down 16.7 per cent on the ASX today to trade at 1.5 cents.

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