Gold Mountain’s $1.56m raising to boost Wabag exploration tempo and lithium projects in Brazil
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Gold Mountain is cashed up to fund exploration at its Wabag project in Papua New Guinea and for advancing the Brazilian lithium projects after raising $1.56m through a heavily supported placement.
The funds were raised through the placement of 260 million shares priced at 0.6c each to new and existing sophisticated and professional investors.
Net proceeds will be used by Gold Mountain (ASX:GMN) to fund ongoing exploration at Wabag, meet due diligence of the lithium projects held by Mars Mines, and for general working capital.
“We are very pleased with the strong support for the placement from new and existing investors,” executive director Tim Cameron said.
“We believe the strong demand for this capital raising is a testament to the quality of the company’s Wabag project in PNG and the proposed acquisition of the Brazilian lithium projects.”
Since reporting its highest ever trenching assay results such as 52m at 0.32% copper with a high-grade zone of 17m at 0.53% copper in June, the company has carried out limited exploration such as mapping and sampling, whilst the primary focus has been on the collation and review of all exploration results to date.
Enhanced drill targeting via an internal data review is underway in relation to the highly prospective Mt Wipi prospect where two potential intrusions have been identified. Peter Temby, a Consultant Geologist with Mars Mines Ltd (Chief Geologist who was instrumental in identifying the lithium licenses in Brazil) and world class porphyry copper gold, and PNG experienced expert is assisting with an independent analysis of Mt Wipi.
The company is also carrying out due diligence on a significant sized package of Brazilian hard rock pegmatite hosted lithium licences which it is looking to acquire from Mars Mines. Brazil has experienced increased investment activity for lithium exploration, with notable junior exploration companies being Latin Resources Limited (ASX:LRS) and Oceana Lithium Limited (ASX:OCN).
It has an exclusive 60 day option to acquire four separate project areas covering 285km2 over parts of the highly prospective Borborema Province and São Francisco craton within the eastern Brazilian lithium belt. The goal is to rapidly define maiden JORC lithium resources via $2.75 million dollars exploration campaign.
This article was developed in collaboration with Gold Mountain (ASX:GMN), 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.