Great Northern raises $1.6m to fast-track gold drilling as specialist funds race to get in
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Special Report: Great Northern Minerals has had a strong response to an institutional placement, which will boost its cash balance to $2.9M.
Great Northern Minerals (ASX:GNM) received firm commitments from institutional, sophisticated and professional investors for a placement that will add $1.6m to the explorer’s bank balance.
Directors are also getting in on the action, collectively dropping in $100,000 of their own cash.
The placement is being done at 1.9c per share, a 9.5 per cent discount to the last traded share price on August 26.
“The strong support we have received from a number of specialist institutional funds demonstrates the significant opportunity as we accelerate our exploration program at the company’s 100 per cent owned Big Rush and Camel Creek gold projects in Queensland,” chairman Kim Robinson said.
The company is expanding its current Big Rush drilling program, and planning for deeper diamond drilling underneath the central pit is well underway.
Great Northern’s goal is to build a new multi-million-ounce gold camp in North Queensland.
Its flagship assets – acquired last year — include the mothballed Golden Cup, Camel Creek and Big Rush gold mines, which produced a combined +160,000oz at an average grade of 1.9 grams per tonne (g/t) in the 90s.
Great Northern Minerals believes there is a lot more gold where that came from.
The company recently drilled 2,516m across 18 holes in its maiden program at Camel Creek.
Great Northern’s early drilling effort has delivered encouraging hits of 24m at 3.26g/t gold from a depth of 56m within a broader intersection of 52m at 1.9g/t gold, 20m at 2.26g/t gold from 76m and 12m at 4.07g/t gold from 108m.
Gold was encountered in every hole of the program.
It is the first modern deeper exploration ever undertaken at the Camel Creek project.
This article was developed in collaboration with Great Northern Minerals, 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.