08/05/2020 - 13:44

Juniors to raise $6.7m

08/05/2020 - 13:44

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Gold explorers Great Southern Mining and Fraser Range Metals have launched new capital raisings today, with the proceeds to fund exploration programs in Western Australia and NSW.

Juniors to raise $6.7m
Great Southern Mining is developing the Cox's Find gold project in Western Australia. Photo: GSM

Gold explorers Great Southern Mining and Fraser Range Metals have launched new capital raisings today, with the proceeds to fund exploration programs in Western Australia and NSW.

Balcatta-based Great Southern Mining is raising $3.15 million from a share placement to fund an accelerated drill program at its Cox’s Find gold project, located around 70 kilometres from Laverton.

A portion of the funds will also go towards drill programs at the company’s Mon Ami project, also near Laverton, as well as targeting and field mapping programs at its Edinburgh Park project in Queensland.

Chairman John Terpu says Great Southern is now well funded to undertake aggressive exploration projects across the three assets this year.

“The company is now in a strong position to unlock value for shareholders with two brownfields drill out opportunities in highly endowed gold districts in Western Australia in Cox’s Find and Mon Ami as well as additional greenfields discovery potential at Edinburgh Park in North Queensland,” he said.

Great Southern will issue 70 million shares priced at 4.5 cents each, together with one free attaching option for every four placement shares issued.

A further 2.5 million listed options and 10 million unlisted options, exercisable at 6 cents per share, will be issued to lead manager of the placement, Shaw and Partners.

Great Southern shares were up 12.5 per cent at 2:55pm AEST to trade at 5.4 cents.

Subiaco-based Fraser Range Metals has also announced a placement today, targeting $2.75 million through the issue of 110 million shares at 2.5 cents each.

Shares will be issued in two tranches, with Canaccord Genuity acting as lead manager.

Fraser Range is looking to raise a further $750,000 from a share purchase plan on the same terms as the placement.

The company said it would use the funds to progress a soil sampling program and a diamond drilling campaign at its Mt Adrah gold project, in the Lachlan Fold in NSW.

Its shares were up 3.6 per cent at 2:55pm AEST to trade at 2.9 cents.

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