Nexus Minerals has launched a $6.6 million share placement to fund a feasibility study on the company’s gold joint venture with Saracen Mineral Holdings.
The Pinnacles gold project is situated five kilometres south of, and along strike from, Saracen’s Carosue Dam operations.
Pinnacles has a resource of 413,000 tonnes at 2.1 grams per tonne of gold for 28,000 ounces of gold.
Nexus said it would use the funds from the placement to complete a feasibility study on the project, along with reverse circulation drilling, diamond drilling and geophysical surveys at its flagship Wallbrook gold project.
The project is an amalgamation of tenements acquired by Saracen and US-owned Newmont Mining Corporation in 2018.
Nexus managing director Andrew Tudor said recent exploration programs at Wallbrook were successful.
“The Pinnacles feasibility study is underway and planning of Wallbrook follow-up RC and diamond drill programs are well advanced,” he said.
“To have achieved such a strong level of investor support for the placement was very encouraging and a strong endorsement of the company’s endeavours”.
Nexus will issue 44 million shares at a price of 15 cents each to raise $6.6 million.
Nexus plans to raise a further $732,600 from the exercise of 6.6 million options, priced at 11.1 cents and with an expiry of November 30.
Its shares closed down 3 per cent to trade at 16 cents.