ASX-listed explorer Hamelin Gold (ASX:HMG) has completed the first tranche of a placement to advance exploration at the West Tanami Gold Project in Western Australia.
The company reports tranche 1 of the placement raised $2.75 million through the issue of 27.5 million shares at $0.10 per share. Additionally, Hamelin’s 2 major shareholders, Gold Fields and Silver Lake Resources, were both issued 8.5 million shares under tranche 1.
Both companies will receive a further 4 million shares each under tranche 2 of the placement, subject to shareholder approval. Hamelin says tranche 2 of the placement seeks to raise a further $1 million through the issue of 10 million shares.
The company will seek shareholder approval at an extraordinary general meeting (EGM) expected to be held in late June 2023.
Additionally, Hamelin’s directors have made commitments to subscribe for $200,0000 in shares under the second tranche of the placement, though this is also subject to shareholder approval.
Hamelin’s directors have made commitments to subscribe for $200,0000 in shares under the second tranche of the placement
The completion of tranche 1 of the placement follows the opening of a share purchase plan (SPP) aiming to raise an additional $1 million on 12 May 2023.
Under the SPP, Hamelin says existing shareholders will have the opportunity to subscribe for additional shares in the company at the same price as the placement. This SPP will close on 5 June 2023.
Hamelin Gold is an ASX-listed exploration company based in Perth, Western Australia. The company has a landholding of about 2,500km-square in the Tanami Gold Province, which is prospective for tier-1 gold and rare earth element (REE) deposits.
The West Tanami Gold Project is a belt-scale greenfield opportunity hosting the same geology and key structures at Newmont Corporation’s (NYSE:NEM) over-14 million-ounce Callie Operations in the Northern Territory.
Hamelin says minimal modern exploration has been completed across its landholdings, and as a result, it is conducting systematic whole-of-project target generation activities to support major drill programs.
Images: Hamelin Gold Ltd
