The placement was supported by new institutional and sophisticated investors as well as existing shareholders.

Strickland Metals Ltd has received $12 million in a heavily supported capital raising of 160 million fully paid shares at an issue price of 7.5c per share to fund its 23,000m Millrose resource drill out, which will begin in January 2022.

The company says its strengthened balance sheet also allows for aggressive regional exploration work on the Dusk til Dawn and Big Daddy gold targets as well as the recent Iroquois zinc-lead discovery.

A mineral resource upgrade will complement the program and from there, Strickland (ASX:STK) will consider kicking off a scoping study to develop the resource.

Canaccord acted as the sole lead manager to the placement, which was also supported by JP Equity Partners.

Transformational raise to support gold strategy

STK chief executive officer Andrew Bray said the company is thrilled to have secured the support of new institutional investors and thanks existing shareholders for their ongoing support.

“This capital raise is in many ways transformational for Strickland as it means we are now fully funded for the resource drill out at Millrose, which is the cornerstone of our gold strategy.

“The northern portion of our ground – host to the Dusk til Dawn and Big Daddy gold trends – is also emerging as a very exciting area, and we’re growing increasingly optimistic about the likelihood of further gold discoveries out of the current RC program and next year’s planned programs.”

Additionally, he said the funding provides Strickland with the flexibility to continue “progressing the exciting, recently discovered zinc-lead mineralisation at Iroquois.”

“We’ll continue to conduct programs at Iroquois in parallel with our main gold strategy, with drilling expected to recommence there in the first quarter of next year,” Bray added.

Use of funds

The Millrose gold deposit is around 30km east of Northern Star Resources Ltd’s (ASX:NST) world class Jundee operation and hosts a mineral resource of 6 million tonnes at 1.8g/t gold for 346,000 ounces contained gold.

It forms part of a large, mineralised zone that to date has been defined by reverse circulation (RC) and limited diamond drilling over a strike length of at least 2,000 metres.

Gold mineralisation remains open along strike and at depth with the trend well defined and traceable in the available geophysical datasets and limited RC and aircore drilling.

The resource currently consists of a northern and southern zone with the ‘gap’ in between only defined by aircore drilling that was not included in the resource estimation.

Strickland plans to conduct infill drilling of the gap between the south and northern resource domains with RC drilling, as it believes the position is prospective for both supergene and primary gold.

Other activities include:

  • Along strike extensions to the north and south as identified in the geophysical and geochemical datasets;
  • Depth extensions, with a focus on the high-grade domains to understand underground mining potential;
  • Further definition of extensive, near-surface laterite mineralisation; and
  • Parallel trends to the west of the main defined shear zone.




This article was developed in collaboration with Strickland Metals, 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.