Gawler to raise $1.5m for exploration

West Perth-based uranium and base metals explorer Gawler Resources Ltd has announced plans to raise $1.5 million through share and options issues to fund exploration of the company's tenements.

The company will issue one option at one cent each to shareholders on a one for one basis to raise up to $300,000.

In addition to this, the company will issue 5 million shares at 20 cents each, along with 5 million options at an issue price of one cent each, in a placement through Stripe Capital to raise $1 million.

The company will also issue 1 million shares at 16 cents each with a further 1 million options at one cent each to raise $170,000.

Gawler recently acquired a 30 per cent interest in an oil and gas development project off the coast of the United States through its acquisition of Delaware-based Cottesloe Oil & Gas Inc, a subsidiary of Perth-based Aurora Oil & Gas Ltd.

Gawler will offer 8 million shares, 12 million convertible shares and up to 14 million 1 cent options to Aurora in consideration for the acquisition, with the intention of spending the majority of profits from the raising on the project.

Other funds raised will go towards its subsidiary Globe Resources Pty Ltd and working capital.

The offers are not underwritten, though Gawler directors have stated that any shortfall in options would be placed at their discretion.

They will all close by March 21.