Legacy Minerals (ASX:LGM) has completed a targeted placement to provide additional funding for the upcoming drill campaign at the Bauloora epithermal project in the Lachlan Fold Belt region of New South Wales.
The company reports commitments have been secured from unrelated sophisticated and professional investors for an oversubscribed placement of new fully paid ordinary shares at $0.15 per share to raise about $1.2 million.
Legacy says the placement was tightly allocated for the purpose of increasing the size of the approved January 2023 maiden diamond drilling at Bauloora (3,000m) and for target generation across the project.
the placement was tightly allocated for the purpose of increasing the size of the approved January 2023 maiden diamond drilling at Bauloora
The issue price represents a 15% discount to the 10-day trading volume weighted average price (VWAP) of $0.176; a 14% discount to the 15-day VWAP of $0.173; and a 12% discount to the 20-day trading VWAP of $0.169.
Managing Director Chris Byrne says the placement value was deliberately small and that the equity sees the company triple the planned drill metres at Bauloora and “greatly increases exposure to discovery”.
This will be the first diamond drilling into the low-sulphidation veins mapped across at 27km-square vein field at the project. The funds give Legacy flexibility to immediately follow up on success in initial holes as well as test the newly defined parts of the low-sulphidation epithermal system.
The company has all relevant government drilling approvals, access, and a drill rig is secured.
The Bauloora Project is an underexplored, district scale project centred over felsic volcanics that contains a newly defined large low sulphidation epithermal system host to widespread gold and silver bearing veins.
Targets defined by coherent geophysical, soil and rock chip geochemical anomalies recently identified through Legacy’s systematic field work were never recognised by previous explorers nor drill tested.
Write to Adam Orlando at Mining.com.au
Images: Legacy Minerals Ltd & iStock
