Investors keen to get a piece of Lefroy; coffers boosted by $3.8m
Special Report: Lefroy Exploration has had strong support from institutional and sophisticated investors, including its major holder Gold Fields, for a share placement to raise over $3.8m.
Gold Fields, which is also Lefroy’s biggest shareholder, acquired a further 3.45 million shares to maintain its stake at 18.12 per cent.
This latest capital raising, which was done at 20c per share, introduced a number of new shareholders to Lefroy’s register, and was oversubscribed.
Chairman Gordon Galt said Lefroy was now in a “strong financial position” to accelerate exploration activities at the Eastern Lefroy gold project, including the highly prospective Lucky Strike Trend, and to complete initial drilling at Hang Glider Hill.
“These programs, together with the continued exploration activity in the western portion of the Lefroy gold project through our JV with Gold Fields, means there will be substantial drilling activity and news flow going forward,” he said.
Lefroy has built up a valuable portfolio of gold projects in WA’s most fertile gold region.
The company has 600sqkm of under-explored ground just 50km from Australia’s gold capital of Kalgoorlie, WA.
The project has been divided into two parts – Western Lefroy and Eastern Lefroy.
The company’s immediate neighbours include some large gold mines.
On one side is Gold Fields’ St Ives operation, and on the other is Silver Lake Resources’ (ASX:SLR) Mt Monger gold operation.
Gold Fields is taking care of exploration on the Western Lefroy project under a deal that gives the heavyweight the opportunity to earn a 70 per cent stake by spending up to $25m on exploration over six years.
Earlier this month Lefroy revealed that the fourth batch of drilling results from Western Lefroy had extended the previously discovered LLT06 gold zone even further— to 1.4km by 2.1km.
Lefroy, meanwhile, is free to fully concentrate its exploration efforts on the Eastern Lefroy project, which significantly increases and accelerates the junior’s chances of making two big discoveries at the same time.
The company plans to start a new round of drilling in August to test potential extensions to gold mineralisation at its Lucky Strike prospect, where it recently defined a large mineralised gold trend coincident with a gravity anomaly.
All the signs point to it being a major structural trend that could be traced over a 3km strike length to the southeast.