Great Southern Mining (ASX:GSN) is set to pocket $1.8 million it says will be used to upgrade discoveries at its wholly owned Duketon Gold Project to economic mineral resources.
Just over $1.23 million will come through the issue of 61.9 million shares to sophisticated and professional investors at $0.02 each.
A further $562,000 is expected to come from certain directors of Great Southern, who have collectively subscribed for 28.1 million shares at the same price.
The issue price of $0.02 per share represents a 13% discount to the last closing price of $0.023, and a 5% discount to the company’s 10-day volume-weighted average price.
Settlement is expected to occur on Wednesday, 17 April.
“With the backdrop of a rising gold price, it is an exciting time to be embarking on gold exploration in tier-one jurisdictions such as Western Australia and Queensland,” Managing Director Matthew Keane says.
“The company’s key objective for the coming 12 months is to translate gold discoveries at its 100% owned Duketon Gold Project into economic mineral resources.”
The upcoming work forms part of a broader exploration strategy across Western Australia’s Duketon Belt, with targets expected to include Southern Star, Golden Boulder, and Amy Clarke.
In addition, Great Southern expects drilling by Gold Fields (JSE:GFI) to begin at the Edinburgh Park Project in northern Queensland. Great Southern signed an agreement in October 2023, under which Gold Fields stands to earn a 75% stake in Edinburgh Park by spending $15 million on exploration over a six-year period.
Drilling activities are expected to begin within the next few months.
As of 10:58 am AEST, Great Southern Mining had slid 8.7% to $0.021 per share.
Write to Oliver Gray at Mining.com.au
Images: Great Southern Mining
