Saturn to fast-track drilling after private placement, stock rallies +17pc
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Special Report: Saturn is well funded to deliver the next upgrade of the Apollo Hill gold resource following a placement to US institutional investor Dundee Corp.
Dundee will inject about $1.9m to help accelerate exploration drilling and resource definition at Saturn’s (ASX:STN) flagship 781,000oz Apollo Hill gold project near Leonora in WA.
The placement was completed at 50c per share – a tiny discount to the last closing price of 51c. The stock is currently hitting all-time highs of 60c per share in morning trade Wednesday.
Dundee first became a substantial shareholder in Saturn in an on-market transaction on June 10, and on completion of this placement, will become a 9.99 per cent strategic shareholder.
“After the completion of Dundee’s thorough and interactive due diligence exercise, I believe we share a long-term strategic view for the Apollo Hill asset,” Saturn managing director Ian Bamborough says.
“This successful raising has put the company in a strong position as we seek to test our exciting new concepts and follow up on some of the best intersections ever seen across the Apollo Hill project.
“A large mineralised corridor at Apollo Hill is offering plenty of room for additional discovery and the potential to significantly increase the company’s resource inventory.
“The placement has strengthened our balance sheet, provided us with a new cornerstone investor, and ensured we have the ability to accelerate our work.”
Saturn now has $5.1m cash in hand, giving it a strong financial platform from which to progress Apollo Hill.
These additional funds will be used to increase focus around the higher-grade Apollo Hill hanging-wall zones, where recent intersections have now outlined a 600m wide mineralised corridor.
Drilling is in progress, with assays pending for several holes, Saturn says.
The company is currently ‘stepping out’ along strike where it sees a much larger opportunity, with a second reverse circulation rig expected to arrive on site in the coming weeks.