Olympio Metals (ASX:OLY) is raising $1.25 million through a placement to cover upcoming drilling costs at the Bousquet Gold Project in Québec.
The company will issue 19.23 million shares at an offer price of $0.065, representing a 19% discount to the 15-day volume weighted average price (VWAP).
Holders will be eligible to acquire one attaching option per every two shares subscribed for in this placement, with each option holding an exercise price of $0.15 and to expire three years from the issue date.
Canaccord Genuity is acting as the lead manager to the placement.
Funds will be used to fund a second phase of drilling at Bousquet, following the initial program which covered 33 holes for 7,083m. Assays are still pending from five drillholes.
Managing Director Sean Delaney says more than 85% of maiden drilling intersected “significant” gold mineralisation.
“The program has demonstrated that the Bousquet Gold Project has a large mineral system at play,” Delaney says.
“The improved technical understanding of the structural controls will allow Olympio’s geology team to optimise the next drill program to test high impact targets, particularly at Paquin.”
Olympio intends to target strike extensions and down drip positions of veins at the Paquin prospect, while also targeting the up dip position ahead of a gold resource estimate for the area.
Meanwhile, the company will also conduct drilling at the Decoeur prospect to target zones of structural dilation along the North Bousquet Fault. The area already has an established strike extension of 1.7km, with upcoming programs intending to identify the fluid focusing points.
Olympio Metals is a mineral explorer focused on the discovery and development of gold projects in Québec, Canada.
Write to Maddison Elliott at Mining.com.au
Images: Olympio Metals
