FEG nabs $4m to chase monster gold targets in Indonesia

Far East Gold raises a grand total of $4m via SPP and placement
Funds will assist with exploration plans at three potentially tier-1 assets in Indonesia
The upgrade of Idenburg to a 2012 JORC standard is on the cards, an asset that FEG believes has an upside 7.2Moz high-grade gold exploration target

Special report: Combined with the $2.3m raised in the recent institutional placement, Far East Gold has raised more than $4m in the last month, with existing investors backing its exploration strategy via a share purchase plan.

Far East Gold (ASX:FEG) holds a portfolio of prized projects in Indonesia, South-east Asia’s largest economy and a promising jurisdiction for underexplored mining opportunities.

With gold and copper prices close to all-time highs, FEG is hoping to replicate the success newly appointed chairman Justin Werner has previously had in Indonesia.

Werner is known for his success as managing director of Nickel Industries (ASX:NIC), a minnow which has morphed over the past decade into a $3.5bn mega miner and one of the world’s largest nickel producers.

FEG is focused on advancing the Trenggalek and Woyla projects as well as the newly acquired Idenburg asset – which sits within the country’s Papua province – and comes with a sizeable database of historical work completed by many of the world’s major gold miners.

Fuelling exploration across a potential tier-1 portfolio

With the company’s share purchase plan closing on Tuesday, August 20, a grand total of $4m will now be spent across the three assets in Indonesia.

The SPP was strongly supported by shareholders and raised $1.75m with the issue of 12,874,508 shares.

Firm commitments were also received for the placement, which raised $2.3m at 13.6c via the issue of 16,911,764 new shares.

These funds are intended to fuel exploration efforts across their portfolio, including the commencement of confirmatory drilling on Idenburg to upgrade the potential 7.2 Moz Au project to a 2012 JORC standard and to begin the phase 1 drill program on Trenggalek’s 2.2Bt of copper orebody targets.

FEG is also looking forward to resuming resource drilling at Woyla, following up on one of the project’s best cumulative gold intercepts to date of 20m at 7.57g/t gold, 8.5g/t silver (7.67g/t gold equivalent).

The company had believeds that Woyla was one of the most prospective undrilled copper-gold deposits in Southeast Asia, hosting potential high-grade epithermal and porphyry deposits – they now believe recent drill results are confirming this belief.

Pivotal six months ahead

“We are overjoyed to have seen such strong support from shareholders for our SPP,” FEG chairman Justin Werner said.

“The over $4 million raised from both the recent placement and the SPP will enable us to fuel exploration efforts across our portfolio of potential tier-1 assets and to capitalise on the extraordinary opportunities presented to Far East Gold in Indonesia.

“We sincerely thank shareholders and new investors coming on to the registry for their strong support and we remain actively committed to continuing to generate value for shareholders in what is expected to be a pivotal next six months.”

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.