Stavely Minerals says it will use $28 million raised to progress the company’s flagship copper-gold project in Victoria, while Lion One Metals has sought funds for its Fijian gold project.
Stavely Minerals says it will use $28 million raised to progress the company’s flagship copper-gold project in Victoria, while fellow Perth-based explorer Lion One Metals has sought funds for its Fijian gold project.
Stavely, which operates its namesake copper-gold project in western Victoria, said it would use the funds raised to accelerate an ongoing shallow mineral resource drill-out at the project’s Cayley Lode discovery, at the Thursday’s Gossan prospect.
The Nedlands-based company is also seeking to identify additional lodes at Thursday’s Gossan, as well as drill new deep porphyry targets and progress phase one of an open pit scoping study.
Chairman Chris Cairns said the placement, which was oversubscribed, placed Stavely in a good position to become a significant new copper development company.
“Apart from introducing a number of prominent global investors to our register, the proceeds of the raising will significantly strengthen our balance sheet and give us the capability to pursue a multi-pronged exploration, resource development and growth strategy,” he said.
“Importantly, our company has always been structured in such a way that the vast majority of the funds we raise goes directly into the ground in drilling, and also towards completing our work to a very high standard.”
Mr Cairns said Stavely would maintain a prudent and cost-conscious approach to exploration.
The company had made its first copper-gold-silver discovery the 28 million tonne Stavely project.
Last month, Stavely said it had discovered another “monster’ copper-gold hit at the Cayley Lode target, revealing a hit of 87 metres at 1.74 per cent copper, 0.57 grams per tonne of gold and 20g/t of silver from a 140-metre down-hole.
“We are very excited to have discovered a lode-style of high-grade copper-gold that has not previously been recognised in Australia, and that recognition opens some significant opportunities for additional discoveries both within the Thursday’s Gossan prospect area and regionally within the company’s dominant tenure position,” Mr Cairns said.
Stavely will issue around 41.7 million shares priced at 60 cents under the placement, which is being led by Morgans Corporate and co-managed by Hartleys.
Arlington Group is acting as UK co-manager with contributions from Tamesis Partners.
Stavely emerged from back-to-back trading halts this morning, with its shares down 0.8 per cent at 3:17pm AEST to trade at 66 cents.
Meanwhile, Lion One Metals said it has raised $C20 million ($A21 million) from a “bought deal” with Canada-based Haywood Securities and Echelon Wealth Partners to progress Lion One’s flagship Tuvatu gold project in Fiji.
Shares in Lion One were down 4.6 per cent to trade at $1.98.