Great Boulder Resources (ASX:GBR) is conducting a placement to raise $6.3 million to fund resource growth activities and new discovery drilling at the Side Well Gold Project in Western Australia.
The junior explorer has already received binding commitments for the placement, which will comprise the issue of 149.5 million shares at $0.042 each — a 22.2% discount to the closing price of $0.054 on 28 October.
Discovery Capital Partners, Cumulus Wealth, and Bell Potter Securities will act as joint lead managers to the capital raising.
Great Boulder, which has a market capitalisation of $32.9 million, says together with existing cash reserves of $1.5 million, the placement will fund resource expansion exploration and drilling campaigns at the Side Well Project, as well as ongoing extensional drilling.
At Mulga Bill and Ironbark, extension drilling is aiming to expand the existing resources, while at Mulga Bill North, ongoing exploration and drilling programs are working towards a maiden resource estimate.
Managing Director Andrew Paterson says the proceeds will put Great Boulder in a position to capitalise on what has been a “fantastic” year for exploration at Side Well.
“The funds raised will be used to deliver resource growth at Side Well as we close in on the million-ounce resource milestone and start to focus on a medium-term 1.5 million ounce objective, which is based on our view that Side Well has the potential to underpin a long-term mining operation once we complete the necessary drilling and economic studies,” Paterson says.
The funds will also be used for metallurgical testwork at Mulga Bill, as well as exploration at the recently acquired Polelle and Wanganui Gold projects, which sit 8km southwest of the Side Well Gold Project.
The Side Well Project has a defined resource of 7.45 million at 2.4 grams per tonne for 668,000 contained ounces of gold.
Great Boulder is a mineral explorer focused on its portfolio of prospective gold and base metals assets in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Boulder Resources
