Gold explorer Yandal Resources (ASX:YRL) has launched its second capital raise in just over 2 months, this time tapping investors for $2.5 million via a share placement.
It’s a ‘top-up’ of the $4 million placement undertaken in November 2023, according to Yandal, and comes on the back of the ‘positive’ drill results from the company’s Ironstone Well-Barwidgee Gold Project in Western Australia announced on 12 January.
Given the quality of the drilling results, Yandal has now made the call to raise extra funds to accelerate and expand its drilling work in the area.
The $2.5 million top-up will help fund reverse circulation (RC) and diamond drill testing, as well as mineral resource estimate (MRE)-related work, at exploration targets within the Ironstone Well-Barwidgee area. Yandal also plans to put a portion of the funding towards work at its Mt McClure and Gordons projects.
Under the placement, Yandal will issue 31.2 million new shares to professional and sophisticated investors, as well as existing shareholders, at $0.08 per share to raise $2.5 million.
This offer price marks a 5.9% discount to Yandal’s 5-day volume-weighted average price and an 11.1% discount to its last trading price.
MST Financial acted as lead manager to the placement.
And it seems investors are supportive of the move; not only has the placement been oversubscribed, but shares in Yandal Resources were up 22.22% to $0.11 as of 12:45pm AEDT on 2 February 2024.
Yandal Managing Director Tim Kennedy says the placement is evidence that investors are keen to see the company have a ‘solid funding runway’ to expand and accelerate exploration at its key targets.
“We are in the advanced planning stage of our forthcoming drilling program at Ironstone Well-Barwidgee in the Northern Yandal Belt, which will include RC and diamond drill testing of key targets including Oblique, Quarter Moon, and New England Granite.
Weather permitting, we expect to mobilise in early March and look forward to reporting progress as results come to hand.”
Following the settlement of the new placement, Yandal expects to have around $7.7 million cash at hand to fund its exploration work.
Write to Joshua Smith at Mining.com.au
Images: Yandal Resources
