Caprice Resources raises $7m to fund Murchison gold exploration

• Caprice Resources has raised $7m through a placement of shares to institutional and sophisticated investors
• Proceeds will be used to fund aircore, RC and diamond drilling at its Island project
• The company will also carry out aircore drilling at Cuddingwarra and geophysical surveys at West Arunta

Special Report: Investors have demonstrated their confidence in Caprice Resources and its plans to advance gold exploration at its Murchison gold projects by providing firm commitments for a $7m placement.

The placement of 134.6 million shares priced at 5.2c each – a 7.3% discount to the 15-day volume weighted average price – to institutional and sophisticated investors was strongly led by prominent Australian institutions and long only resources funds.

It significantly strengthens Caprice Resources’ (ASX:CRS) balance sheet to about $8.5m in cash.

Proceeds from the placement will be used to fund aircore, reverse circulation and diamond drilling at its Island gold project and aircore drilling at the Cuddingwarra project.

“Once again, we are pleased to see such strong support from new and existing investors as we forge ahead with our exploration drilling programmes at our Murchison gold projects, including those hosted within granted mining leases situated within trucking distance of two hungry operating mills and a very strong gold price,” CRS chief executive officer Luke Cox said.

“Concurrent with this period of drilling at the Murchison gold projects, we aim to commence geophysics across our West Arunta project, delivering high priority targets in this tier one jurisdiction.”

Listen: Luke Cox joins Barry FitzGerald on the Explorers Podcast

Funded exploration

The placement will be used to fund reverse circulation exploration drilling at the Island project, where the company has just wrapped up a 7000m drill program – assays for which are expected in the next four weeks.

Diamond drilling will also be conducted for metallurgy, geotechnical and structural analysis.

Additionally, CRS will carry out aircore drilling at both the Island and Cuddingwarra projects to test new targets.

At the West Arunta project, the company will carry out geophysical surveys to define targets.

Island put Caprice on the map for small cap investors back in February when it rolled out a headline intersection of 28m at 6.4g/t from its Vadrians Hill prospect.

At 5.8c, CRS shares have risen an impressive 190% in the past six months.

Watch: Caprice inks a drill-for-equity agreement

This article was developed in collaboration with Caprice 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.