Falcon Metals (ASX:FAL) has secured firm commitments for a $30 million placement to fund expanded drilling at its Blue Moon Gold Project in Victoria.
The placement comprises 50 million new shares at $0.60 each, representing an 11.8% discount to the last traded price. Falcon intends to use its existing capacity under ASX listing rules 7.1 and 7.1A to issue the shares.
Managing Director Tim Markwell says the ‘strong’ support for the placement reflects growing recognition of opportunities across the company’s exploration portfolio.
“We are delighted by the strong support received from both existing shareholders and the ‘who’s who’ of gold-focused institutional investors across Australia, North America, and Europe,” Markwell says.
“With this raising, Falcon is now exceptional well funded to advance the exciting next phase of exploration at Blue Moon, while also commencing maiden drilling at Errabiddy.”
Falcon intends to deploy approximately $18 million towards 60,000m of diamond drilling at Blue Moon, where three rigs currently operate. Drilling has confirmed multiple reef lines extend onto Falcon’s tenure, with wide-spaced step-out holes targeting down plunge extensions.
The project sits immediately north of the historical 22-million-ounce Bendigo Goldfield.
The company also plans to allocate funds for a maiden 4,000m to 5,000m reverse circulation program at its Errabiddy Gold Project in Western Australia, scheduled to commence in September.
Errabiddy sits 35km southeast of Benz Mining‘s (ASX:BNZ) Glenburgh Gold Project. Falcon holds 100% of E09/2984 and is earning up to 70% of permit E09/2457 at Errabiddy by spending $2 million over 60 months.
Settlement is scheduled for 3 September, with allotment and quotation the following day (4 September). Canaccord Genuity Australia, Jett Capital Advisors, and Bell Potter Securities acted as joint lead managers and bookrunners, with Salient Corporate serving as corporate adviser.
Falcon Metals is a gold explorer with flagship assets in Victoria’s Bendigo Zone.
Write to Paula Fabe at Mining.com.au
Images: Falcon Metals
