Labyrinth Resources (ASX:LRL) has received firm commitments from existing shareholders, directors, and new strategic, institutional, and sophisticated investors to raise $19.5 million via a placement.
The placement will be completed via the issue of some 92.86 million new fully paid ordinary shares in Labyrinth at an issue price of $0.21 per new share.
Sternship Advisers, Euroz Hartleys, and Bell Potter Securities acted as joint lead managers to the placement.
The equity raise will enable the company to continue its accelerated drilling program at Comet Vale where a reverse circulation drill rig is currently testing high-grade mineralisation at the Sovereign Trend, which has previously produced 200,000 ounces at 20g/t gold, before moving back to undertake further extensional drilling at Cheer.
Labyrinth expects to add a diamond drill rig at Comet Vale during December 2024. Regular drilling results are therefore expected from Comet Vale over the coming months.
As announced on 18 November, on completion of the acquisition by Labyrinth of 100% of the issued shares in Admiral Gold from Bardoc Gold, a wholly-owned subsidiary of Genesis Minerals (ASXGMD), Labyrinth will have an interest in the tenements held by Admiral comprising the Mulwarrie Project.
The Company expects to be able to commence drilling at Mulwarrie during Q1 2025. Drilling at Vivien is also expected during Q1 or Q2 2025 following the receipt of heritage and drilling approvals.
CEO Charles Hughes says the support received from Genesis along with existing, long-term, and new Labyrinth shareholders reflects the “exciting potential of the company’s projects”.
“After completion of the placement, the company is expected to hold approximately $21 million in cash, placing us in an excellent position to quickly ramp-up exploration at our WA focused high-grade gold projects,” says Hughes.
Write to Adam Orlando at Mining.com.au
Images: Labyrinth
