Great Boulder Resources (ASX:GBR) has obtained binding commitments to raise $5 million through a placement to fund exploration across the Side Well Gold Project in Western Australia.
The company will issue 74 million shares at a price of $0.068 per share, representing an 8.8% discount to the last closing price of $0.074 per share, while aligning with the 15-day volume weighted average price (VWAP).
Canaccord Genuity is acting as the lead manager and bookrunner for this placement, which is expected to settle on 2 October.
The placement is reported to be led by Australian resource fund Tribeca Investment Partners, along with other institutional investors.
Proceeds raised in this placement will be used to cover exploration costs at the Side Well Gold Project, in time for a fourth rig that is scheduled to arrive shortly.
As reported by Mining.com.au, the company is currently operating three drill rigs across the greater project, covering the Eaglehawk and Ironbark prospects, with activities expected to carry into next year.
Managing Director Andrew Paterson says the placement represents Great Boulder’s “significant” growth potential.
“This $5 million placement was unsolicited, reflecting recognition of the company’s significant value proposition,” Paterson says.
“Combined with the company existing cash reserves (circa $12 million) this positions us very well to deliver on our dual goals of defining one million ounces of gold as our short-term target and advance our early mining opportunity at Ironbark while we build our resource base for the next stage of growth through 2026 and beyond.’’
Great Boulder Resources is a gold and base metals explorer focused on developing its portfolio of assets in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Great Boulder Resources
