Lefroy raising $6.3 million to ramp up exploration at Burns copper-gold target
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Lefroy Exploration has cashed in on its success at the emerging Burns copper-gold prospect near Kalgoorlie, raising $6.3 million to advance exploration at the exciting prospect.
Lefroy (ASX:LEX) exited a trading halt this morning to announce a $6 million placement existing and new shareholders which will bring new domestic and institutional investors on board.
Conducting the raising at 35c, a 14.5% discount to Lefroy’s last closing price and 11.4% discount to its five-day VWAP, it will also raise $300,000 in a placement to directors subject to shareholder approval.
The raising will enable Lefroy to advance exploration at Burns, a copper-gold intrusion related prospect 70km southeast of Kalgoorlie, a style of mineralisation rare to the famous gold hotspot.
“We acknowledge the ongoing support of existing shareholders and are pleased to welcome new shareholders,” Lefroy chairman Gordon Galt said.
“We are now funded to undertake extensive exploration activities in the Eastern Lefroy Gold Project and in particular around the Burns Project.
“Together with the committed exploration program in the western portion of the Lefroy Gold Project through our JV with Gold Fields, we anticipate significant ongoing news flow on the company’s projects.”
Burns has excited the market since a big RC hit in February of 60m at 5.22g/t gold and 0.38% copper, resulting in a major rerating of Lefroy’s share price.
Drilling and geophysics have now extended the mineralised footprint at Burns to 3000m, with a large drilling program about to restart to extend the limits of the system beneath Lake Randall.
The company is also funded for additional exploration programs at the Coogee South, Hang Glider Hill and Havelock prospects in the Eastern Lefroy project.
Coogee South was the primary target for Lefroy when it listed in 2016, adjoining and containing the southern strike extension of the high grade Coogee open pit which was mined in 2014.
Recent geochemical based aircore drilling generated two new broad open gold anomalies named Catalina and Bronte, with multiple holes ending in anomalous gold mineralisation near or at the top of fresh rock.
A new multiphase drilling program consisting of aircore, RC and diamond drilling is being planned to test the limits of the anomalies at Coogee South.
This article was developed in collaboration with Lefroy Exploration, 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.