New Age raises $3.6m as Pilbara exploration awaits
Link copied to
New Age Exploration has received firm commitments to a $3.6 million capital raise which will advance exploration and drilling at its Pilbara and New Zealand gold projects.
The funds will be raised via a share placement, which was strongly supported by existing New Age (ASX:NAE) investors and a number of new high net worth and institutional investors.
Shares will be issued at 1.8c each and will raise $3.6 million before costs. A free attaching option with an exercise price of 3c, expiring and the end of 2023, will be included for every three shares issued.
The capital raising price came at no discount to NAE’s last traded price on May 6, a 12.9% discount to its five-day volume-weighted average price (VWAP) of 2.07c, and a 17.2% discount to the 15-day (VWAP) of 2.17c.
The directors of the company will also participate in the placement, subscribing for 18 million shares on the same terms subject to shareholder approval.
NAE executive director Joshua Wellisch said the raise would allow the company to continue its exciting exploration work.
“We are very pleased with the substantial interest from strategic investors for the placement,” he said.
“The additional funding will allow us to continue with an aggressive exploration programme across our entire portfolio.
“This will commence imminently as we make final preparations to continue drilling in the Pilbara.”
There will be plenty of eyes on New Age’s exploration efforts in the Pilbara, given the company’s recent success in identifying shallow, Hemi-style targets during aeromagnetic surveying at the northern package of its Pilbara gold projects currently under option with Monterey Minerals.
Hemi, the De Grey Mining (ASX:DEG) company-making gold discovery, has been a hot topic in the region for some time and sits adjacent to NAE’s land.
NAE has the right to acquire 100% ownership of the tenements under its deal with Monterey.
Furthering the enthusiasm was the discovery of more new targets in May during further aeromagnetic work at NAE’s 100%-owned Quartz Hill and Bullock Well gold projects.
In New Zealand, NAE holds a prospecting permit covering the Lammerlaw gold exploration project, adjacent to its Otago Pioneer quartz gold exploration project held under an exploration permit.
The capital raised in the placement will enable aggressive exploration to continue across the company’s projects.
This article was developed in collaboration with New Age 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.