Andromeda Metals surged as much as 143 per cent on news it had bought 11 exploration licence applications in the Pilbara prospective for conglomerate-hosted gold.
The applications cover 756 sq km of ground pegged by Mylo Gold and Frontier Exploration.
The news saw Andromeda’s share price gain as much as 143 per cent on Friday before closing the day at 1.1c, up 57 per cent.
Ten of the applications are held by Mylo Gold and include geological units interpreted by government geologists to be Fortescue Group rocks with some described as hosting conglomerates.
The other application held by Frontier is adjacent to ground held by Novo Resources where several recorded gold occurrences in areas where Mount Roe Basalt and overlying Hardey Formation are mapped.
Hardey and Mt Roe Basalt are volcanic rock formations in the Pilbara’s Fortescue Basin which are known to host gold mineralisation as well as copper, zinc and uranium.
Andromeda will pay $25,000 to complete one month due diligence on the project. It will then fork out a further $50,000 in cash and up to 85 million shares at 0.5c per share to acquire the project.
Capital Raising
Andromeda has raised $566,452 before costs after wrapping up a share placement of 113 million shares at 0.5c per share.
The company wants to raise another $1.4 million via a rights issue to shareholders.
Funds would be used to pay for the due diligence and up-front $25,000 payment for the Pilbara project and for an exploration program at its Bunyip prospect in the Drummond Basin, Queensland.
Board restructure
Former Dioro Exploration boss and Golden Mile chairman Rhod Grivas will take the helm as chairman at Andromeda replacing Colin Jackson.
PAC analyst and Northern Cobalt non-executive director Andrew Shearer will join as a non-executive director replacing Jonathan Buckley.
Andromeda has a market cap of about $5.4 million.