Meteoric to raise $7m

Perth-based Meteoric Resources has received commitments to raise $7 million through a share placement to accelerate its Juruena and Novo Astro gold projects in Brazil.

Under the placement, Meteoric will issue 140 million shares at 5 cents per share, representing a 12 per cent discount to its last traded price of 5.6 cents per share.

The company will use the proceeds from the placement to complete drilling activities at the mines, located 30 kilometres apart in the Alta Floresta gold belt in the state of Moto Grasso, as well as expand proposed geographical programs.

The placement follows a recent capital raising of $2.7 million, announced in August.

Meteoric Resources managing director Andrew Tunks said the board is pleased with how initial exploration of both projects have progressed since their acquisitions in March.

“Following on from the completion next month of the 26 hole, 4,500 metre initial drilling program at Juruena, it is our intention to evaluate our program and plan for the next season of drilling,” Mr Tunks said.

“It is anticipated the new drilling will focus on expanding the known mineralisation at depth at Dona Maria and along strike at Tomate (at Juruena).”

Mr Tunks said the company would explore several other under-drilled targets at Juruena and Arrasto Hills in the northwest.

He said Novo Astro currently has two rigs onsite carrying out its first drilling program, with results expected in late November.

“With these new funds, we will now look to increase our drilling program with a sharply targeted diamond drilling program and a broader regional RC/Aircore program to define the extent of the massive altercation zones we are seeing in the current drilling,” Mr Tunks said.

Shares in Meteoric Resources were down 5.36 per cent to trade at 5.3 cents per share, as at 4:10pm AEDT.