Multi-element explorer Golden State Mining (ASX:GSM) has completed a bookbuild to raise $2 million to fund its lithium and gold exploration strategy in Western Australia.
The company reports it will issue 74.1 million new shares at $0.027 to sophisticated and professional investors to raise the funds. Of these, around 48.8 million shares are subject to shareholder approval in a meeting scheduled for the end of June, with settlement expected in early July.
Golden State Mining shares spiked 16.67% to close at $0.035 on Thursday 25 May.
At the Yule Project, funds raised will be used for an aircore (AC) and reverse (RC) drilling program on the Nomad lithium prospect beginning in July 2023, with further drilling anticipated at Nomad and Yule East in Q3/Q4, as well as an AC and RC drill program on several gold targets.
Further, the company will fund an AC drilling program scheduled for Q3/Q4 2023 at the Paynes Find Lithium Project, an AC drilling program planned for Q4 2023 at the Southern Cross East Gold Project, and additional exploration programs yet to be confirmed, alongside ongoing working capital requirements.
Plutus Capital acted as lead manager to the placement.
Meanwhile, Golden State reports it has secured exploration rights on a tenement neighbouring the Nomad lithium prospect within the Yule Project in the Pilbara region of Western Australia.
Commenting on the placement, Golden State Mining Managing Director Michael Moore says: “We welcome the strong endorsement of our Yule lithium exploration strategy, demonstrated by the overbid placement to existing shareholders and new investors in the company.
“With around $3.5 million in combined cash and placement commitments, the company is well positioned to vigorously and diligently advance its lithium and gold exploration across Western Australia”
With around $3.5 million in combined cash and placement commitments, the company is well positioned to vigorously and diligently advance its lithium and gold exploration across Western Australia, especially at Yule, where we have just enlarged the total project area to around 766km-square in one of Australia’s premier mineral discovery provinces. We have a very busy period ahead of us.”
Golden State Mining is a gold, lithium, and base metals explorer focused on its portfolio of projects across Western Australia. These assets include the Yule, Paynes Find, Southern Cross East, and Four Mile Well projects. The company also holds the Murchison Joint (JV) Project with Caprice Resources (ASX:CRS).
Write to Harry Mulholland at Mining.com.au
Images: Golden State Mining Ltd
