Great Boulder Resources seeks up to $5 million to fund exploration at Side Well Gold Project

Mineral exploration company Great Boulder Resources (ASX:GBR) is aiming to raise up to $5 million through a ‘deliberately scoped’ single tranche placement and an entitlement offer to fund ongoing exploration at the Side Well Gold Project in Western Australia.

Great Boulder Managing Director Andrew Paterson says the company has “deliberately scoped this as a relatively conservative raise”, which he says is appropriate given the company’s share price.

Its share price was trading at $0.089 as of 11:20am AWST.

The company reports it has received binding commitments to raise about $1.5 million through a single tranche placement, which will comprise the issue of 18.15 million new fully paid ordinary shares in Great Boulder at an issue price of $0.082 per share. 

This represents an 18% discount to Great Boulder’s last close on 13 March 2023 of $0.10, a 19.2% discount to the 5-day volume weighted average price (VWAP) of $0.1015, a 16% discount to the 15-day VWAP of $0.0976, and a 12.5% discount to the 30-day VWAP of $0.0937.

Director participation will raise $12,300 through the issue of 150,000 shares to Great Boulder Non-Executive Director Karen O’Neill subject to shareholder approval which will be sought in a general meeting to be scheduled as soon as practicable.

In addition to the placement, Great Boulder is also launching a 1 for 10 non-renounceable pro rata entitlement offer to raise about $3.5 million to existing shareholders. This entitlement offer will be partially underwritten up to $2.5 million by independent corporate advisory firm Discovery Capital Partners. 

The entitlement offer will comprise the issue of up to 43.1 million new fully paid ordinary shares in the company at the same issue price as the placement. Additionally, Great Boulder Managing Director Andrew Paterson, and Chairman Greg Hall intend to participate in the entitlement offer.

The company says the placement and the entitlement offer combined will raise a minimum of about $4 million and a maximum of $5 million which will fund resource expansion exploration and drilling campaigns at Side Well, maiden exploration at the Wellington Base Metal Project, as well as corporate costs, and general working capital requirements.

Cumulus Wealth and Discovery Capital Partners are acting as lead manager to the capital raise. Discovery Capital is also acting as sole and partial underwriter to the entitlement.

Settlement of the new shares under the placement will occur on or around 23 March 2023. Placement shares will also rank equally with existing fully paid ordinary shares, however they will not carry an entitlement to participate in the entitlement offer.

Great Boulder says more than 12.195 million additional shares may be issued after the completion of the capital raising at the discretion of the company’s directors to raise an additional $1 million to accommodate any excess demand from professional and sophisticated investors following the entitlement offer.

These additional shares will be issued on the same terms as those issued under the placement and the entitlement offer.

“We have deliberately scoped this as a relatively conservative raise, which I think is appropriate given the company’s share price”

Commenting on the placement, Great Boulder Managing Director Andrew Paterson says: “We have deliberately scoped this as a relatively conservative raise, which I think is appropriate given the company’s share price. The level of support for this placement in an otherwise difficult market reflects both the quality of our projects and the rapid progress we’ve made in the past 2 years.

We are now launching an entitlement offer to existing shareholders to participate in the next phase. The issue price of $0.082 represents a 12.5% discount to our 30-day VWAP, and I urge all interested holders to contact the Automic Group share registry online to ensure they receive their entitlement in time.

This injection of capital will de-risk our ongoing exploration program at Side Well as well as the initial work at Wellington. The company has already recorded some sensational results this year at Side Well and I’m confident the rest of the year will be equally rewarding.”

Great Boulder Resources is an ASX-listed mineral exploration company with a portfolio of ‘highly prospective’ gold and base metals assets in Western Australia. Its core focus is the Side Well Gold Project at Meekatharra which has a mineral resource of 6.192 million tonnes @ 2.6g/t Au for 518,000 ounces.

The company is also progressing early-stage exploration at the Wellington Base Metal Project in the MVT Province, and it also holds the Whiteheads Project near Kalgoorlie.

Images: Great Boulder Resources Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.