Resources turnaround continues as gold juniors get cashed-up
Investment in gold exploration is heating up with several juniors announcing new funding deals.
Aspiring gold play Breaker Resources (ASX:BRB) is the latest to get cashed-up, raising $10 million as it gears up for a maiden resource at its Lake Roe gold project near Kalgoorlie.
The company, which came out of a trading halt, has raised $10 million through a share placement and is hoping for another $1.5 million through an offer to existing shareholders. Patersons Securities is the lead manager on the deals.
Funds will go towards drilling and development at its Lake Roe Gold Project, 100km east of Kalgoorlie, WA.
Breaker has been drilling continuously at Lake Roe with three rigs since January, and added a fourth rig earlier this month.
Exploration is focused in the 2.2km Bombora area, which forms part of an 8km greenfields gold system where Breaker has drilled 96,000m since mid-2015. The quality and dimensions of the results are consistent with the early stages of a large, new gold camp in a premiere mining jurisdiction.
Elsewhere, Hawthorn Resources (ASX: HAW) is seeking to raise $6 million to fund its share of the development of its Anglo Saxon gold project.
Hawthorn and partner GEL Resources agreed to mine the Anglo Saxon gold project earlier this week.
The raising will take place through an offer to shareholders at 4c per share.
Hawthorn’s major shareholder, Feng Hua, has indicated it will support the offer so its interest remains at 37.6 per cent. GEL will contribute its 30 per cent share of costs under the joint venture agreement.
The project, which lies 140 km northeast of Kalgoorlie, has an estimated life of at least 18 months.
Finally, Draig Resources (ASX: DRG) has boosted its kitty by $3.3 million following an oversubscribed placement of 66 million shares at 5c each.
The cash will pay for exploration at Draig’s Bellevue gold project and other general expenses.
The placement has been undertaken by Patersons Securities as Lead Manager.