Laneway gets more funds for growth

Emerging gold miner Laneway Resources has reached a milestone on the road towards regional growth in North Queensland with the successful completion of the retail component of its fully underwritten entitlement offer of approximately $7.9 million.

The completion of the offer marks the finalisation of the second stage of Laneway’s $11 million (before costs) capital raising program announced in January.

The retail component of Laneway’s (ASX:LNY) one for three offer announced last month raised approximately $2.4 million.

With the previously completed accelerated institutional component, Laneway has received total subscriptions of $6.8 million from existing shareholders, representing almost 86% of the total entitlement offer raising amount.

The shortfall amount of approximately $1.1 million is fully underwritten by Bizzell Capital, an entity associated with Laneway Chairman Stephen Bizzell.

Laneway Directors and their associated entities subscribed for entitlements worth a total of approximately $2.5 million.

Laneway’s Managing Director Brad Gordon said of the completion of the raising: “We are extremely pleased with the high level of participation by our shareholders in this capital raising.

“The successful completion of this raising positions the Company well as it pursues its regional gold production growth strategy in the Savannah region of North Queensland.

“The company will be leveraging the existing production infrastructure of the Georgetown Project, its significant existing gold resource base and the substantial exploration potential of our tenement portfolio to underpin a long term gold production growth profile and to create substantial shareholder value for Laneway shareholders”.

The update about the offer closely follows the latest high-grade results from the company’s 100% owned Agate Creek project. Last month’s results from the Sherwood and Sherwood West deposits further confirmed extensions of previously mined veins and previously identified systems that host narrow high-grade gold zones.

The current drilling program is part of a multi-stage campaign initiated after a Multi-Element Study identified Kidston-style intrusion-related gold system (IRGS) potential at Agate Creek. Kidston was once Australia’s largest open cut gold mine and in the same sub-region of North Queensland as Laneway’s 100% owned Agate Creek.

Ongoing drilling at the 1,024sqkm project will also help with pit designs and waste rock sampling as part of Environmental Authority amendment applications.

Laneway will therefore be putting funds raised to good use for further exploration at Agate Creek and as part consideration for the Georgetown Gold Project, plus costs associated with getting the regional processing hub up and running again.

The new shares and new options will be issued under the retail component of the entitlement offer tomorrow and are expected to start trading on Thursday, 14 April.

This article was developed in collaboration with Laneway 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.