Perth-based explorer Hamelin Gold (ASX:HMG) has raised over $1 million in an oversubscribed share purchase plan (SPP) to accelerate exploration at its West Tanami Gold Project in Western Australia.
The company reports the SPP shares follows a 2-tranche share placement that raised $3.75 million on 5 May 2023. As a result of the ‘strong’ demand for the capital raise, Hamelin has decided to close the SPP early to minimise the scale-back of applications for shares.
Speaking to Mining.com.au, Hamelin Gold Managing Director Peter Bewick says it’s good to see the SPP fully subscribed.
“As part of our capital raise that we completed in May, we committed to a $1 million share purchase plan to existing shareholders, and we’re very grateful and very pleased to see that taken up by shareholders so that we close that today oversubscribed.
We have no ability to take more than the $1 million that we asked for, so there’ll be a scale-back process, but that SPP will close this afternoon and the shares should be allocated in the next few weeks as part of our full capital raise.
“we’re well and truly funded now to complete the programs proposed and hopefully accelerate with some future successes”
So we’re well and truly funded now to complete the programs proposed and hopefully accelerate with some future successes.”
The effective closure date for the SPP is today (1 June 2023), as opposed to the original closure date of 5 June 2023. The company advises that any further applications received after the revised closing date will not be accepted under the SPP and will be refunded.
Hamelin reports it will undertake a scale-back of applications received prior to the revised closing date and any money refunded will be paid by cheque or direct credit.
Hamelin expects to issue the new shares on 9 June 2023 and notes refunds for applications received after the revised closing date are scheduled for this same date.
The funds raised through the SPP and placement will be used to conduct a reverse circulation (RC) and diamond drilling program along the Sultan gold corridor, along with RC drilling at the Fremlins, Newkirk, and Olsen prospects.
Additionally, Hamelin will use the funds to undertake aircore (AC) and RC drilling across new camp-scale gold targets, extend geochemical coverage across new regional targets, and provide working capital.
Hamelin Gold is a Perth-based explorer focused on developing its West Tanami Gold Project in Western Australia. The project covers about 2,500km-square in the Tanami Gold Province, which is considered prospective for tier-1 gold and rare earth deposits.
The West Tanami project is a belt-scale greenfields opportunity that hosts the same geology and ‘key’ structures as Newmont Corporation’s (NYSE:NEM) more-than-14-million-ounce Callie Operations in the Northern Territory and the Browns Range Rare Earth Element (REE) deposit in Western Australia.
Write to Harry Mulholland at Mining.com.au
Images: Hamelin Gold Ltd