Golden State Mining has added around $3.2 million to its Yule gold and lithium exploration cashbook, courtesy of an oversubscribed placement.   

Golden State (ASX:GSM) announced this morning that it has successfully completed a buildbook to raise the funds through the issue of up to 25.6 million new shares at 12.5c each.

The money will combine with GSM’s existing cash reserves to be applied towards the following:

  • 2,500m of follow-up gold reverse circulation/diamond drilling at targets delivered from phase one and two aircore drilling at Yule South, starting in March;
  • 1,500m of lithium RC drilling based on known pathfinders identified in phase one and two aircore drilling targeting lithium-bearing pegmatite mineralisation at Yule South, starting in May;
  • A 15,000m phase three aircore drill program focused on delivering additional gold and lithium RC drill targets at the Yule project, starting in July;
  • Additional exploration programs to be confirmed for the second half of 2021, and;
  • Financing GSM’s ongoing working capital requirements and administrative overheads.

Managing director Mike Moore said the funds would allow Golden State to build on solid foundations laid out in 2020.

“Golden State welcomes the significant support demonstrated by an oversubscribed placement by existing shareholders and new investors in the company,” he said.

“The company is building on the solid foundations laid in 2020, where we drilled over 28,000m of aircore at the Yule project.

“The funds raised in the placement will allow the company to expand its drilling programs over several high priority gold targets as well as the new lithium targets generated from known pathfinder elements identified in phase one and two aircore data.

“2021 will see significant shareholder activity with multiple drilling programs, and we look forward to keeping shareholders up to date with our activity.”

Around 13.7 million of the shares to be issued are not subject to shareholder approval, with the balance subject to shareholder approval at a meeting scheduled for April 5.

The company’s largest shareholder, Perth Select Seafoods, has committed to a million shares in the placement.

Golden State Drilling
Golden State onsite at Yule. Pic: Supplied.

Big plans afoot

Today’s announcement comes on the back of a recent update from GSM, in which it revealed its gold exploration plans for 2021 and noted its intention to follow up lithium pathfinders at Yule.

First exploration work under the plan is expected to begin next month.

The Yule project is in serious company in the Pilbara’s Mallina Basin, just 15km northwest of De Grey Mining’s (ASX:DEG) landmark Hemi discovery.

De Grey released more promising results from that project earlier this week.


This article was developed in collaboration with Golden State Mining, 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.