- Lycaon Resources has raised $2.5m via placement to existing and new investors
- The company is also a beneficiary of the WA government’s EIS funding initiative
- LYN plans to begin drilling at the Stanmore project by mid year
Special report: Lycaon Resources has raised $2.5m and secured $180,000 via co-funding from the WA government to leverage first mover advantage in the red hot West Arunta region of WA.
Lycaon Resources’ (ASX:LYN) Stanmore project is just 90km to the north of WA1 Resources’ (ASX:WA1) mammoth Luni niobium discovery which set the stock alight in 2022.
WA1 hit thick, high-grade niobium in its first hole in the remote, lightly explored but highly mineralised West Arunta region, regarded as one of the least studied and least understood areas of WA by the Department of Mines, Industry Regulation and Safety (DMIRS).
That find led to a re-rate in WA1’s share price – now up a barely believable 12,228%, from 14c to $17.26 – and shone a light on other explorers in the area, like LYN.
LYN has identified a carbonatite target that contains a 700m long magnetic feature analogous to WA1’s discoveries and is now gearing up for some intensive exploration work.
Oversubscribed $2.5m capital raising
A successful $2.5m raise through a placement to new and existing investors sets the explorer up nicely to carry out planned exploration programs at the Stanmore niobium-REE project.
The oversubscribed capital raising – at an issue price of $0.28 per placement share – represents a 15.15% discount to LYN’s last closing price and a 5.18% discount to the 5-day VWAP.
Funding to carry out drilling
In conjunction to the raising, LYN has received $180,000 in funding as part of the WA government’s Exploration Incentive Scheme (EIS) to carry out exploration and drilling programs at Stanmore.
LYN says drilling will target a regionally prominent 700m long magnetic feature (Stanmore) as well as a larger ~3km wide magnetic anomaly (Volt).
The company believes these two high priority drill targets, along with three secondary drill targets (Edi, Earl and Menlo) may be prospective for niobium-REE carbonatite or iron-oxide copper gold (IOCG) mineralisation.
Trailblazing initiative
Two holes have been designed by Southern Geoscience Consultants (SGC) to test the centre peak of two different magnetic anomalies being the Stansmore and Volt prospects.
An additional five holes will test the magnetic gradient and other locations of the main magnetic anomalies identified from the aeromagnetics.
LYN says understanding the structural setting and its intersection with any structural corridors such as the Balgo Fault will be essential to understanding the orientation and geometry of a potential large mineral system.
“The funding support is a strong endorsement of the quality of our project, and I am looking forward to an exciting few months ahead as we get our exploration work programs underway,” LYN technical director Thomas Langley says.
“We are now in the fortunate position, having developed positive relationships with the Parna Ngururrpa traditional owners, to be the first explorer to drill test some of the most interesting geophysical features in the West Arunta outside of WA1 Resources world class Niobium carbonatite discovery.”
This article was developed in collaboration with Lycaon 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.