A $4 million placement, backed by several major shareholders has paved the way for Strickland to continue its exploration programs across its WA-based assets.
Strickland Metals (ASX:STK) directors have also committed their support for the placement, with a collective total of $225,000, subject to shareholder approval.
The offer price of $0.032 represents an 18.4% discount to the 15-day VWAP of $0.0392 and a 13.5% discount to the last closing price of $0.037.
Yandal mineral resource targeted for mid 2023
STK managing director Andrew Bray says the company is extremely grateful for the ongoing support of its shareholders.
“We are delighted to have successfully raised $4 million largely from our existing shareholder base,” he says.
“Funds raised will allow Strickland to continue its exploration programs at its flagship Yandal gold project, the results of which are feeding into an updated mineral resource set for release in the current half year period.”
Drilling at Iroquois
Additionally, Bray says several diamond holes will be drilled in the coming weeks to test the main feeder structure at Iroquois, which will occur prior to the planned demerger.
“This is designed to provide stronger understanding of the controls on the mineralisation,” he adds.
“The information provided by this drilling will be critical in informing the design of the large-scale programs to commence immediately after the IPO.”
Spin-out progress
Stricklands base metal spin-out of its non-core Iroquois zinc-lead and Bryah Basin projects into a new listed company to focus on its flagship Yandal gold project is proceeding apace.
Work is well advanced on drafting of the prospectus with the application for Demerger Relief – the main outstanding lead time item – expected to be lodged with the Australian Taxation Office during the current quarter.
This article was developed in collaboration with Strickland Metals (ASX:STK), 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.