Godolphin wraps up $1.422m entitlement offer, nabs new strategic investor
Godolphin Resources has wrapped up its entitlement offer raising $1.422m, with American Rare Earths (ASX:ARR) becoming a substantial shareholder, picking up 13.21% of the company.
Godolphin Resources’ (ASX:GRL) tenements cover over 3,400km2 of highly prospective ground in the Lachlan Fold Belt in NSW, a province rich in gold, copper, and rare earths deposits.
The current focus is Narraburra, which contains one of Australia’s largest clay REE resources at 94.9Mt at 739ppm TREO, including a higher-grade component of 20 million tonnes at 1,079ppm TREO.
The prospectivity doesn’t end there. The company recently lodged an application for a new 112 km2 exploration licence at the project which has the potential to host any north-western extension of Narraburra.
Godolphin is also hunting base metals at the Yeoval project, where the company flagged copper mineralisation last month at the historical Goodrich prospect.
The entitlement offer, combined with the company’s recent placement, totals $2.137m – providing exceptional strong financial flexibility support for Godolphin’s upcoming exploration programs at Narraburra and Yeoval.
American Rare Earths subscribed for $638,000 (for a total of 15.2 million new ordinary shares and 7.6 million options), becoming a substantial shareholder in the company.
“Importantly, ARR share our view regarding the significant potential for Godolphin’s Narraburra rare earth project and support our development-driven strategy,” MD Jeneta Owens said.
“The additional funds raised through the placement of the shortfall, together with the funds already raised from the entitlement offer and placement, gives us the capacity to complete our scheduled phase 2 metallurgical program and diamond drilling at our Narraburra REE project, along with testing of two highly prospective prospects on the Yeoval copper-gold project in the second half of 2023.”
The new funds will be used towards the company’s systematic exploration strategy to advance the Narraburra project via additional metallurgical testing and diamond drilling, aimed at increasing the resource size and grade.
Godolphin will also use the funds to complete RC drilling at Yeoval in H2 2023.
This article was developed in collaboration with Godolphin 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.