Great Boulder Resources has secured $5.5 million from a share placement to fast-track exploration at its Side Well and Whiteheads gold projects.
The company said the placement would boost its cash balance to about $8.7 million, allowing for high-impact exploration campaigns at the two projects, with Side Well located near Meekatharra and Whiteheads about 70 kilometres north of Kalgoorlie.
Great Boulder will also use the proceeds to fund a maiden exploration program at its Wellington base metals project, in Western Australia's Earaheedy Basin.
Managing director Andrew Paterson said the placement was well supported from new and existing shareholders.
“This is a strong validation of Great Boulder’s WA gold and base metal asset portfolio, exploration team and strategy,” he said.
"The placement positions the company with a strong treasury to accelerate exploration programs at Side Well and Whiteheads and to undertake our maiden exploration program at the exciting new Wellington project once tenure is granted.”
Meanwhile, results from a recently completed drilling program at the Mulga Bill prospect, as part of Great Boulder’s Side Well project, will be released shortly.
About 69.2 million shares will be issued under the placement priced at 8 cents per share; a 12 per cent discount to the company’s closing price on May 14.
Discovery Capital Partners and Melbourne-based Cumulus Wealth are acting as lead managers to the raising.
Shares in Great Boulder were up 4.4 per cent at 3:31pm AEST on Wednesday to trade at 9.5 cents.
By Business News
