Unlike the character of Greek mythology, Strategic Energy Resources’ Achilles 1 prospect shows no glaring weakness as the company lands investment to explore. Pic via Getty Images.
Mining
Special Report: Strategic Energy Resources has raised $2 million to explore its Achilles 1 polymetallic prospect in NSW, supported by a cornerstone investment by major shareholder Datt Capital and Lowell Resources Fund.
South Cobar lies along the eastern margin at the southern end of the Cobar Basin, along strike from Eastern Metals’ (ASX:EMS) Brown’s Reef polymetallic deposit.
Strategic Energy Resources’ (ASX:SER) Achilles 1 prospect also lies along the Achilles shear zone, which hosts Australian Gold and Copper’s (ASX:AGC) own Achilles prospect 8km away from SER.
Earlier this month, AGC hit a 5m intersection at 16.9g/t gold, 1,473g/t silver and 15% lead+zinc as part of a drilling campaign.
The $2m placement details the issue of 181.8m fully paid ordinary shares at 1.1c in two tranches and has been subscribed to with significant excess demand, representing an 8.3% discount to the company’s last trading price prior to the placement of 1.2c per share.
Tranche 1 will result in 112.1 million shares worth $1,234,000 being issued, while Tranche 2 will issue 69.6 million shares worth $766,000.
SER managing director David DeTata says the strength of investor demand for the $2m placement is a clear signal to the company that the Achilles 1 prospect needs to be drill-tested.
“The outstanding drill results from AGC to the north at Achilles 3 show the potential for the South Cobar region to hold multiple discoveries and with the funds received we are now fast-tracking our exploration plans,” DeTata says.
Cornerstone investor Datt Capital will also appoint its Partner and Head of Research Tony Gu to the SER board as a non-exec director.
“Datt Capital identified SER’s strategy of science-driven project generation and exploration in pursuit of Tier-1 discoveries as a point of differentiation and has continued to back us as we execute this strategy,” DeTata says.
“The addition of Tony Gu to the Board further strengthens Datt Capital’s commitment and alignment with our company.
“The significant investment from Lowell Resources Fund also validates our ability to generate and explore for Australia’s next major discovery.”
This article was developed in collaboration with Strategic Energy Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
