Stavely in $8.3m raising

Copper and gold explorer Stavely Minerals has raised $8.3 million via a share placement and share purchase plan, with the company completing drilling programs at a number of tenements on the east coast.

Under the share placement, Nedlands-based Stavely has issued 20 million shares at 34 cents each, with strong support from sophisticated and institutional investors to raise $6.8 million.

In addition, the company will raise a further $1.5 million through a share purchase plan, which will be conducted on the same terms as the share placement.

The funds raised through the capital raising will primarily be used to accelerate drilling programs in western Victoria.

Follow-up exploration programs are also planned this year in Queensland targeting epithermal and intrusive-related gold mineralisation.

Managing director Chris Cairns said the company was delighted by the response to the raising.

“Over the past 18 months we have been systematically narrowing in on a potential copper-gold porphyry discovery at the Thursday’s Gossan prospect and we are now well funded into the next phase of exploration drilling at this very exciting prospect,” he said

“And, with a recent earn-in and joint venture agreement in-place with Navarre Minerals, Stavely Minerals has further augmented a dominant tenure position in an under-explored alkalic copper-gold porphyry belt.”

Shares in Stavely finished down 13.7 per cent at 44 cents each.