Bubalus raises $1.5m for Victorian gold and antimony exploration

Bubalus Resources raises $1.5m via a placement to existing and new shareholders
The 16.5c issue price represents a 10.81% discount to the last traded price of 18.5c
Drilling will begin in late April

Special report: A maiden drilling campaign is set to start at Bubalus Resources’ Crosbie South gold-antimony prospect in Victoria thanks to a recent $1.5 million raise.

The placement, supported by existing as well as new sophisticated and institutional investors, has significantly bolstered the company’s balance sheet via the issue of more than 9.09 million shares at an issue price of 16.5c.

Bubalus (ASX:BUS) managing director Brendan Borg will support the capital raising on the same terms as the placement for an additional $50,000 through the issue of 303,030 shares, subject to shareholder approval.

The issue price represents a 10.81% discount to the last traded price of 18.5c on March 31 and a 9.69% discount the 15-day VWAP of 18.27c.

Watch: A gold mine lost to history

Exploration at Crosbie

BUS kicked off field programs at the recently optioned Victorian gold-antimony portfolio in February, where rock chips results of up to 19.1g/t gold and up to 2.02% antimony have been uncovered.

The licences include Crosbie, 18km from Agnico Eagle’s Fosterville gold mine and 20km from Mandalay Resources’ Costerfield gold mine, which among Australia’s highest grade currently operating gold mines.

It also includes Murrindindi, a 354km2 area within the Melbourne Zone of the Lachlan Orogen.

The Melbourne Zone has historically been less explored in comparison to the Bendigo Zone due to the discovery of gold at Ballarat and Bendigo but the recent development of Costerfield as well as drilling success at Southern Cross Gold’s (ASX:SX2) Sunday Creek project has led to renewed interest.

Gold and antimony are two of the hottest commodities on the market right now, with prices sailing through record highs for both in recent months.

Watch: Field programs begin as exploration heats up in Victoria’s goldfields

What now?

BUS plans to begin drilling Crosbie South in late April to test the geophysical targets supported by high-grade surface sampling results.

Further surface sampling and geophysical surveys are planned at Crosbie North to refine drilling target positions.

Results of these initial programs will guide further work at Crosbie.

Drilling down the track may require environmental and other approval including from the Taungurung Land Council, the Department of Energy, Environment and Climate Action and Parks Victoria.

Inyati Capital acted as lead manager to the placement.

This article was developed in collaboration with Bubalus 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.