Great Southern Mining (ASX:GSN) has received firm commitments to raise around $4.6 million (before costs) through the issuance of new fully paid ordinary shares, with directors and management committing $0.4 million, subject to shareholder approval.
The placement comprises the issue of 165,610,003 new shares at a price of $0.028 per share, with all shares ranking equally to existing shares in the company.
The placement issue price of $0.028 represents a 15% discount to the last closing price of $0.033 per share.
Managing Director Matthew Keane says that the company is going to “aggressively accelerate” resource definition for its Western Australian gold portfolio.
“A key focus will be the Duketon Gold Project where two significant discoveries are taking shape at the Golden Boulder and Amy Clarke prospects,” Keane says.
“In addition, the company with our joint venture partner Gold Fields, is looking forward to an exciting 12 months ahead as we drill multiple high impact targets chasing monster gold and gold-copper deposits in north Queensland.”
Funds from the placement, together with existing cash reserves, will be used to accelerate drilling programs at the Golden Boulder discovery and Amy Clarke, in addition to advancing a pipeline of gold targets at the Duketon Gold Project.
Morgans Corporate and Salient acted as joint lead managers to the placement.
Great Southern Mining is an Australian exploration company with a focus on projects in Laverton Western Australia and Mt Carlton in north Queensland.
Write to Amy Rotman at Mining.com.au
Images: Great Southern Mining
