Hamelin Gold (ASX:HMG) plans to advance drilling and geochemical activities at the West Tanami and Yilgarn gold projects in Western Australia, upon completing the first tranche of a capital raising.
Chieftain Securities and Cygnet Capital acted as joint lead managers to the placement.
As part of the placement to raise $2.8 million, tranche one comprised the issue of 23.02 million shares at $0.07 per share. The issue price represents a 13.2% discount to the 10-day volume weighted average price.
Gold Fields (NYSE:GFI) issued 11.63 million shares after injecting $815,000 to take its total stake in Hamelin Gold to 17.8%.
As part of the second tranche, Hamelin directors have committed to subscribe for $100,000 at the same issue price as tranche one.
Tranche two is subject to shareholder approval, which is planned to be sought at a general meeting to be held in May 2025.
As Mining.com.au previously reported, Hamelin during the next few months, the company plans to drill test a suite of large-scale gold targets.
At West Tanami, reverse circulation and diamond drilling will be conducted at the Jazz and Fremlins prospects, while a combination of aircore and RC drilling will be conducted at the Camel, Far SW and Ginger targets.
The West Tanami Project covers 2,277km2 and spans 100km of strike along the Trans-Tanami structural corridor that hosts Newmont’s (ASX:NEM) plus-14-million-ounce Callie Gold Deposit across the border in the Northern Territory.
Hamelin says it is one of Australia’s most unexplored gold provinces.
Meanwhile, in the Yilgarn the company will complete diamond drilling of the Anderson gold anomaly, follow-up RC drilling at Ularring, as well as advance the Venus Project to grant and complete initial aircore drill test of priority gold targets.
Write to Aaliyah Rogan at Mining.com.au
Images: Hamelin Gold
