Forrestania Resources (ASX:FRS) is raising a further $951,000 via a placement and share purchase plan.
Chairman John Hannaford says the market support for the capital raising gives the company a runway to accelerate exploration programs at the company’s “highly prospective” Bonnie Vale Project, starting with the Adan Ann drilling.
“This sets the company up for several potential re-rate opportunities in a very bullish gold market,” he says.
“We look forward to bringing current and new investors along for the journey.”
Forrestania is undertaking a single tranche placement of 27.5 million shares to raise $344,000 and a share purchase plan of 48.5 million shares to raise a further $607,000.
The capital raising was done at an issue price of $0.0125, which is a 17.54% discount to both the last closing price of $0.015 per share on 9 October 2024 and the five-day volume weighted average price.
Under the share purchase plan, eligible shareholders can apply for up to $30,000 worth of new shares at the placement offer price of $0.0125. The offer opens on 15 October and closes 31 October 2024.
Drilling at Adan Ann, part of the larger Bonnie Vale Gold Project located near Coolgardie in Western Australia, is planned for later in October and will target extensions of previous “high-grade” drilling results.
These results include 7m @ 5 grams per tonne (g/t) gold from 4m, 6m @ 6.5g/t from 16m, 16m @ 2.6g/t from 24m, along with historic drill spoil samples of up to 49g/t.
Forrestania plans to follow up the current drilling program with regional and follow up drilling.
The company is exploring for lithium at its Forrestania and Eastern Goldfields Projects in Western Australia, as well as in Canada’s James Bay region.
Forrestania is also focused on the copper potential of its Eastern Goldfields Project and has a pipeline of lithium, copper, gold, and rare earths prospects to be tested across its portfolio.
Write to Angela East at Mining.com.au
Images: Forrestania Resources
