WA1 Resources (ASX:WA1) has received a firm commitment for a placement of new ordinary shares to raise $10 million.
Regal Funds Management, which is one of Australia’s largest institutional investors, has subscribed for all of the placement shares.
Privately held MST Financial Services acted as lead manager to the capital raise.
The placement price of $2.75 per share represents a 2% discount to the 5-day VWAP of WA1 shares. This will result in the issue of about 3.6 million new shares and the company having about 53.4 million shares on issue.
Funds raised will primarily be applied toward exploration activities and development studies at the West Arunta Project, along with administration/corporate costs and general working capital.
Addressing the capital raise, WA1 Managing Director Paul Savich says:
“This placement will allow WA1 to accelerate and expand ongoing exploration activities in the West Arunta. A diamond drill rig is expected to arrive at site late this month to complement the RC drill rig currently on site. This ongoing drilling is designed to support a maiden Mineral Resource Estimate at the Luni carbonatite in the second half of 2023, alongside follow-up step out exploration drilling at the P2 carbonatite discovery.
“In addition, the Company is commencing a number of development activities and progressing mineralogical assessments to inform initial process testwork programs”
In addition, the company is commencing a number of development activities and progressing mineralogical assessments to inform initial process testwork programs.”
The West Arunta Project in Western Australia, located some 700km West Northwest of Alice Springs, includes three granted exploration tenement covering an area of 267km2 and two exploration licence applications. Prior to WA1 acquiring the project, the tenements had historical exploration for gold and copper largely in the form of reconnaissance airborne geophysics, limited ground geophysical surveys, and soil sampling.
Drilling within the exploration project was limited to a single diamond drill hole, with a second diamond drill hole in the region proximal to but outside of the tenement, until WA1 completed its maiden drill program in July 2022 completing a total of seven holes across three prospect areas.
Write to Adam Orlando at Mining.com.au
Images: WA1 Resources Ltd
