James Bay Minerals raises $6m to accelerate gold exploration in Nevada

James Bay Minerals raises A$6m via a placement
Funds to be used to conduct exploration and drilling at the Independence gold project in Nevada
Commitments were secured at $0.65 per share

Special Report: James Bay Minerals has raised $6m via firm commitments to a placement to institutional and sophisticated investors in Australia and overseas.

The issue price of $0.65 per share represents a 11.39% discount to the 10-day VWAP of $0.734, and a 24.42% discount to the last closing share price of $0.86.

Funds from the placement will be spent on exploration and development activities at the Independence gold project, including expansional drilling, infill drilling and fieldwork, as well as general working capital and exploration activities at the La Grande lithium projects in Quebec, Canada.

The placement will comprise the issue of a total of 9,230,770 shares and will be conducted using the company’s existing capacity under ASX Listing Rule 7.1 and 7.1A.

‘Strong confidence’

“We are thrilled with the overwhelming interest and support we’ve received for this $6 million placement, which underscores the strong confidence the market has in our strategy and the potential of the Independence gold project,” JBY executive director Andrew Dornan said.

“This funding will enable us to accelerate our plans and unlock significant value for our shareholders as we continue to advance one of the most exciting gold projects in North America.”

Diamond and RC drilling underway

JBY recently started a 2000m diamond and reverse circulation drilling program at the Battle Mountain site in Nevada, targeting the Sunshine system, one of three major northwest striking faults identified at the project.

The diamond holes will aim to confirm the presence of high-grade mineralisation related to the Daylight fault and test below the current resource extent.

Two RC holes are planned in the east of the project, with the first to target the intersection of the Moonlight Fault with a chert-breccia mineralised trend that was recently discovered through rock chip sampling.

The acquisition of Independence means JBY is now underpinned by an advanced exploration asset, with significant resource growth potential and future low-cost development opportunities in a tier-1 global mining jurisdiction.

This article was developed in collaboration with James Bay 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.