Godolphin Resources has received firm commitments to raise A$715,000 via a placement at $0.042 per share to fund further exploration and mining studies at the Narraburra rare earths project in WA.

Funds will be used towards drilling, metallurgical and mineralogical studies and initiation of a scoping stage mining study at the project.

The company also plans to update the Mineral Resource Estimate at Narraburra, which has an existing JORC 2012 resource of 94.9Mt @ 739ppm TREO with high grade core of 20Mt @ 1,079ppm TREO.

“We are very pleased with the strong support the company received for the placement, particularly at such a critical juncture in the Godolphin’s growth trajectory,” Godolphin Resources (ASX:GRL) MD Jeneta Owens said.

Drilling at Narraburra is scheduled for this quarter, alongside planned drill programs at the Goodrich, Cyclops and Yeoval East projects.

Entitlement offer to raise additional $1.4m

The company has also launched a non-renounceable entitlement offer to eligible shareholders to raise an additional A$1.4 million to be undertaken on the same terms as placement.

The entitlement offer will be one new share for every two shares held on the record date, together with one new option, for nil additional consideration and for every two new shares acquired, which are exercisable at A$0.06 and expiring on 31 December 2024.

“These funds have been earmarked for a number of near-term drill programs across our highly-prospective project suite,” Owens said.

“The company has a number of initiatives planned that will commence this quarter, including drilling at Narraburra to increase the size and grade of our recently reported JORC 2012 resource, and additional exploration at Goodrich, Yeoval and Cyclops.

“A considerable amount of work towards these drill programs has been undertaken in recent months and the company is very confident that results will provide a much better understanding of the development potential for our assets and unlock considerable value for shareholders.”

This article was developed in collaboration with Godolphin Resources Limited, 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.