23/10/2020 - 15:00

Gold explorers raise $20m

23/10/2020 - 15:00

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Perth-based Encounter Resources, Predictive Discovery and Trek Metals have each launched capital raisings, with the proceeds to go towards gold projects in Australia and Guinea.

Encounter is raising funds for its gold and copper projects in WA and the Northern Territory. Photo: Encounter Resources

Perth-based Encounter Resources, Predictive Discovery and Trek Metals have each launched capital raisings, with the proceeds to go towards gold projects in Australia and Guinea.

Encounter Resources, which owns gold and copper projects in Western Australia and in the Northern Territory, is raising $6 million from a share placement.

The company is developing gold-focused projects with Newcrest in WA’s Tanami and West Arunta regions, and a copper-cobalt project with IGO in the Paterson.

Encounter also has an option to enter an earn-in and JV agreement with BHP to advance its Elliott copper project in the NT, as announced late last month.

Encounter will issue about 31.6 million shares priced at 19 cents under the placement, led by Euroz Hartleys Securities. Chieftain Securities is acting as co-manager.

“The strongly supported placement lays the foundation for a major exploration drive,” Encounter managing director Will Robinson said.

“The additional funding will allow us to progress and build our extensive project portfolio of joint ventures and partnerships with leading mid-tier and major producers, while also accelerating sole funded exploration programs”.

Encounter shares closed up 17 per cent to trade at 24 cents.

Fellow gold explorer Predictive Discovery has launched a $10.6 million share placement, with the proceeds to go towards the development of its Bankan gold project in Guinea.

The project is located in the Siguiri Basin, which is home to AngloGold Ashanti’s 10 million ounce Siguiri mine.

Predictive Discovery is planning to deliver a maiden mineral resource estimate for the Bankan project in mid-2021. A second drill program began this week.

The company will issue about 190 million shares priced at 5.6 cents each under a two-tranche share placement, jointly led by Euroz Hartleys and Sprott Capital Partners.

Predictive shares closed up 1.6 per cent to trade at 6.2 cents.

Meanwhile, Trek Metals is raising nearly $3 million from a rights issue, with the proceeds to go towards a maiden gold exploration program in the Pilbara.

Trek will issue one CHESS depositary interest (CDI) for every five CDI shares, priced at 7 cents each. The offer is fully underwritten by Westar Capital.

Trek will use the funds to explore its recently acquired Jimblebar and Pincunah projects.

Its shares closed down 6 per cent to trade at 9.4 cents.

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