Trek Metals Limited (ASX: TKM) announced that commitments were received for a share placement to raise A$3.05 million at 6C per share to accelerate exploration across its key Pilbara gold and base metal projects in Western Australia.
Share placement
The Company said that it has received applications for a share placement comprising 50,833,333 shares at an issue price of $0.06 per share to sophisticated and professional investors to raise a total of A$3.05 million. Included in the placement is an application for $350,000 by Chairman Tony Leibowitz, subject to shareholder approval.
Funds to be used to ramp-up exploration activity
The company said that the proceeds of the Placement will increase the Company’s cash reserves to over A$5 million, putting it in a strong position to unlock the potential of its expanded Pilbara gold portfolio and pursue new growth opportunities.
TKM said that the $3.05m raising would underpin ongoing exploration and maiden drill programs at the newly acquired Tambourah Project and the existing Pincunah Project.
Next steps
The company said that the field work will resume at the Tambourah Project and the Pincunah Gold and Copper Project in the Pilbara.
TKM said that exploration programs are set to ramp-up during the March Quarter, paving the way for maiden drilling programs targeted to commence in April, following the northern wet season.