Yandal Resources (ASX:YRL) has launched a $4 million share placement to fund a fresh bout of exploration across its Yandal Belt gold tenements in Western Australia.
The company will place 76.9 million fully paid ordinary shares to professional and sophisticated investors at $0.052 per share, and the shares include a 1-for-2 free attaching option with an exercise price of $0.11, expiring on 17 November 2025.
All Yandal directors are participating in the placement, subject to shareholder approval.
MST Financial Services acted as sole lead manager to the placement.
Yandal says the placement will be spread over 2 tranches: tranche one includes the issue of 35.4 million new shares to raise $1.8 million, and tranche two includes the issue of 41.5 million new shares to raise $2.2 million, subject to shareholder approval.
The placement proceeds will be primarily put towards drilling and exploration target testing across the company’s Ironstone Well, Bardwidgee, Mt McClure, and Gordons projects.
The funds will also be used for Mineral Resource Estimate (MRE)-related activities, a preliminary lithium target assessment, and general working capital.
Yandal Resources Managing Director Tim Kennedy says: “It’s clear that participants can see the quality and inherent value that our project portfolio represents.
These funds will enable us to accelerate exploration at our key target areas, starting with a reverse circulation (RC) program at the large-scale Oblique project commencing next week.
It will also enable us to direct funds to early-stage assessment of the potential for other commodities such as lithium, which have not yet been the focus of past exploration activities.”
“It’s clear that participants can see the quality and inherent value that our project portfolio represents”
The Oblique prospect is part of the Ironstone Well project.
Harrison adds that the company has a ‘very active’ exploration schedule planned over the next 6 to 12 months.
Yandal Resources is a precious and critical metals explorer focused on discoveries in Western Australia’s tier-one gold belts.
As of 30 September 2023, the company had $3.2 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Yandal Resources
