Great Southern to raise $1.8m

Mineral exploration company Great Southern Mining will raise $1.8 million in a bid to enhance its gold resource base across both Western Australia and Queensland.

Following the news, shares in the Matthew Keane-led company dipped by 13 per cent, trading at 2 cents per share as of 12.25pm WST. 

Under the placement, Great Southern said it would issue 61.9 million new shares at an offer price of 2 cents per share, which will generate approximately $1.23 million. 

Additionally, 28.1 million fully-paid ordinary shares will be issued to particular Great Southern directors, subject to shareholder approval, which will fetch an additional $562,000. 

The issue price of 2 cents per share represents a 13 per cent discount to Great Southern's most recent closing price prior to its trading halt - and also is a 5 per cent discount to the 10-day volume-weighted average price as of April 8. 

Mr Keane told the market that the placement, which is expected to be settled on April 17, provided an excellent opportunity for the company.

“With the backdrop of a rising gold price, it is an exciting time to be embarking on gold exploration in tier-one jurisdiction’s such as Western Australia and Queensland," he said.

"The company’s key objective for the coming 12 months is to translate gold discoveries at its 100 per cent owned Duketon gold project into economic mineral resources. In addition, we anticipate the commencement of drilling by Gold Fields at the Edinburgh Park Project in northern Queensland in the coming months."

Great Southern posted a net loss after tax of $807,724 in the first six months of the 2024 financial year, which rose from $664,470 during the prior corresponding period. As of December 31 2023, the company said it also had $1.12 million cash in the till. 

Elsewhere, Nedlands-based Empire Resources will tap investors for $741,957 following the issue of approximately 370.9 million shares at an offer price of 0.2 cents per share - on the basis of one new share for every three shares held. 

Empire last traded at $0.003 cents per share as of 12.25pm WST.