Investors have underscored their support for Far East Gold and its move to drive exploration of its Woyla copper-gold project in Indonesia by backing a $2.1m placement.

Institutional investors subscribed for about 4.2 million shares priced at 50c, a 18.83% discount to the five-day volume weighted average prices, under the placement.

Far East Gold (ASX:FEG) is also raising up to an additional $1.5m through a share purchase plan which offers existing shareholders the opportunity to subscribe for shares at the same price.

Proceeds from the placement and SPP will be used to progress exploration across its portfolio with a focus on its Indonesian projects.

This includes testing additional exploration areas within the Woyla tenement that it managed to secure access to earlier than expected.

Woyla project

Woyla was previously held by Barrick Gold and Newcrest though neither major miner was able to secure key forestry and environmental approvals to drill at the project, which made Far East’s ability to achieve this goal all the more impressive.

This led to first-ever drilling at the Anak Perak prospect within the Woyla project following early stage rock chip sampling that returned bonanza grade assays of up to 119 grams per tonne (g/t) gold and 533g/t silver.

While laboratory assays are still pending (and imminent) for the drilling, all six of the holes drilled to date in the Phase 1 18-hole program have intersected the Main Zone quartz vein breccia system, which show consistent vein width along the 200m of strike length tested to date.

Drilling has also started at the Rek Rinti prospect area where sampling has returned results of up to 46g/t gold and 664g/t silver.

This article was developed in collaboration with Far East Gold, 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.