Bryah Resources boosts exploration kitty with $1.3 million raise
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Special Report: Bryah Resources will bank an extra $1.3 million to spend on copper-gold exploration on the back of a successful placement.
Bryah Resources (ASX:BYH) raised the cash to fund further exploration activity at its Bryah Basin and Gabanintha projects in central Western Australia.
The funds will be applied towards diamond and RC drilling programs at the highly prospective Windalah project in the Bryah Basin; gold and base metal exploration at Gabanintha; the costs of the placement and general working capital.
The raising comes shortly following a $5 million offer from Primero Group and ACMI Group for Bryah’s interest in the Bryah Basin Managese Joint Venture.
Bryah intends to accept that offer should JV partner OM Holdings (ASX:OMH) choose not to match it.
Managing director Neil Marston said the additional funds would allow the company to progress its exploration goals in the new year.
“The successful completion of this placement will see the company holding $2.3 million in cash available to apply to the company’s continuing exploration efforts in the Bryah Basin, where we are chasing the next Volcanogenic Massive Sulphide high-grade copper-gold discovery,” he said.
“In addition, as announced last month, we have received a conditional $5 million cash offer for our interest in the Bryah Basin manganese joint venture.
“The company looks forward to completing the manganese rights sale in early 2021, providing a significant additional cash injection for no share capital dilution.
“With these funds the company expects to ramp up copper and gold exploration in the Bryah Basin and at Gabanintha in 2021.”
Under the terms of the placement, shares will be issued at 6c each to raise $1.3 million, with a free attaching option for every two shares issued to have an exercise price of 9c and an expiry of January 31, 2023.
Mac Equity Partners acted as lead manager to the placement, which Bryah said was strongly supported by both existing shareholders and new investors.
Bryah recently wrapped up a substantial program of drilling at the Tumblegum South deposit within the Gabanintha project, with the aim of shoring up the status of an inferred resource which currently stands at 600,000t grading 2.2 grams per tonne for 42,500 ounces of contained gold.
The company is awaiting assays from that campaign.
Meanwhile, an intriguing volcanogenic massive sulphide target at Windalah, similar to that of the nearby Horseshoe Lights copper-gold deposit, has piqued the company’s interest.
A recently completed aircore drilling program at the Windalah East prospect intersected anomalous copper and gold, along with key pathfinder minerals.
These included up to 455 parts per million arsenic, 48.5ppm antimony and 12.7ppm molybdenum.
The results provided Bryah with a coherent exploration target over a strike length of more than 500m which is currently open to the north-west.
It also sits over an airborne electromagnetic target identified in 2018.
With clear targets on the cards and the cash to match, Bryah is pacing itself to hit the ground running on the exploration front in 2021.
This article was developed in collaboration with Bryah 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.