Hamelin Gold (ASX:HMG) has opened a share purchase plan (SPP) to raise an additional $1 million on top of its $3.75 million placement announced on 5 May 2023.
The company says under the SPP, eligible shareholders can apply for up to $30,000 worth of new shares at an issue price of $0.10 per new share without incurring brokerage or other transaction costs.
The company notes the offer price, which is the same as the price of shares issued under the placement, represents a premium of 4.2% to its closing price on the ASX on 3 May 2023 and a 5.1% discount to the volume weighted average price (VWAP).
Speaking to Mining.com.au, Hamelin Gold Managing Director Peter Bewick says this additional SPP offer will bring its total cash position to $8.5 million, with the cash boost expected to fund an “aggressive” exploration program at its West Tanami Gold Project in WA that began yesterday (11 May 2023).
The MD tells this news service that drilling at West Tanami has been designed to target a previously untested position up-dip of ‘high-grade’ gold mineralisation in drillhole TSD0007, which included gold grades up to 15.9g/t Au.
“The funds raised that we announced last week, we raised $3.75 million, which was primarily taken up by our two major shareholders, which were Silver Lake and Goldfields. They both subscribed for $1.25 million worth of stock each, and the rest was placed with clients of Canaccord and Chieftain securities, and the SPP is for another million dollars on top.
“It’ll take our total cash position to approximately $8.5 million, which allows us to complete an aggressive exploration programme in the West Tanami project”
So a total of $4.75 million raised. It’ll take our total cash position to approximately $8.5 million, which allows us to complete an aggressive exploration programme in the West Tanami project, primarily targeting the large-scale gold targets that we’ve generated and identified in last year’s drilling programme and the work done over summer. So funds are going towards accelerating that exploration programme.
Bewick adds that the funds raised will aid in setting up the company for any necessary future exploration.
“It’ll allow us to be more aggressive and potentially plan for more drilling later in the year than what we had previously planned. So it allows us to react to positive results from the drill bit with additional drilling and allows us to go that little bit harder and hopefully get closer to that discovery than we would have without the fund.
“It’ll allow us to be more aggressive and potentially plan for more drilling later in the year than what we had previously planned.”
So very happy with the support given to us from Goldfields and Silver Lake: two very highly credentialled and well-respected gold miners in Western Australia. And their support is very much appreciated and again, really keen to see shareholders, existing shareholders, have the same opportunity to increase their exposure to what is an exciting and very aggressive exploration programme in 2023.”
With the SPP now open, Hamelin Gold announces the offer will close at 5pm AWST on Monday 5 June 2023, with the allotment of new shares expected to follow by 9 June 2023.
Hamelin Gold is an ASX-listed mineral resources exploration company established to execute a modern exploration program at its wholly owned West Tanami Project in Western Australia.
The project is located within proximity to the border of the Northern Territory, near the township of Halls Creek in Western Australia, and comprises about 100km of strike along the Trans-Tanami structural corridor that hosts Newmont’s (NYSE:NEM) giant +14Moz Callie gold deposit in the Northern Territory.
Images: Hamelin Gold Ltd
