Pacgold (ASX:PGO) has completed a $5.6 million placement to advance its exploration program at its wholly owned Alice River Gold Project, just 300km northwest of Cains in North Queensland.
Euroz Hartleys, Bell Potter Securities, and SCP Resource Finance are the joint lead managers to the equity raise.
Funds raised will be delegated towards 12,000m of reverse circulation drilling, 3,000m of diamond drilling, 5,000m of aircore drilling, as well as regional geophysical and geochemical programs and general working capital.
The project recently raised its resource inventory to 12.2 million tonnes @ 1.2 grams per tonne for 474,000 ounces of gold, within a global resource of 26.7 million tonnes @ 1.01g/t for 854,000 ounces of gold, as reported by Mining.com.au.
The company will issue 93.3 million shares at a price of $0.06 per share in a two-tranche placement.
Tranche one will raise $500,000 through the transaction of 8.33 million shares, as well as 13.15 million shares issued for another $800,000 under the company’s existing placement capacity, expected to settle on 6 June 2025 with allotment on 10 June 2025.
Another 71.86 million shares will be issued to raise the remaining $4.3 million in the second tranche, along with a combined $200,000 in shares raised from directors, subject to shareholder approval at the general meeting to be held in early July 2025.
Participants will be able to receive one attaching option for every two shares subscribed at an exercise price of $0.10 with an expiration date of 31 December 2027.
Managing Director Matthew Boyes says the support from new and existing shareholders demonstrates the quality of the Alice River Project.
“With this year’s exploration programs now underway and with a quality team in place, we can look forward to an exciting year for Pacgold as we expand our exploration footprint extensively along the Alice River Project,” Boyes says.
Pacgold, which has a market capitalisation of $9.33 million, is an exploration company focused on the development of gold at its Alice River Project in North Queensland.
Write to Maddison Elliott at Mining.com.au
Images: Pacgold
