Loyal Metals (ASX:LLM) is conducting a $3.5 million placement which will extend the runway to capitalise on unmined resource potential and exploration upside across the Highway Reward Copper-Gold Mine in Queensland.
Under the placement, 10.29 million shares will be issued at $0.34 per share, representing an 11% discount to the five-day volume weighted average price of $0.38.
Canaccord Genuity will act as lead manager to the placement.
The funds will be used to expedite exploration work across Highway Reward, as well as support general working capital requirements.
With $8.2 million in available funding, Loyal Metals says it is resourced to expedite next-generation exploration technologies, including advanced geophysics, 3D geological modelling, and artificial intelligence-driven targeting and vectoring.
These activities will support the company to reassess the copper-gold potential at Highway Reward, where drilling is underway following the recent intersection of 132.5m of massive sulphides, as reported.
Managing Director Adam Ritchie says the capital raise shows clear market support for the company’s exploration strategy at Highway Reward.
“Our first drillhole in over 20 years has delivered 132.5m of massive sulphides, with notable chalcopyrite intervals and past assays indicate consistent gold in the pyritic system,” Ritchie says.
“We look forward to the pending assays confirming promising copper and gold grades.”
Loyal Metals is a mineral explorer focused on its portfolio of projects in Australia and North America.
Write to Aaliyah Rogan at Mining.com.au
Images: Loyal Metals
